Result Update July 28, 2016

Rating matrix Rating : Buy India (CASIND) | 440 Target : | 500 Target Period : 12-18 months Potential Upside : 14% Strong margin expansion...

What’s changed? • Castrol India reported its Q2CY16 numbers, which were above our Target Changed from | 460 to | 500 estimates. Revenues increased 5.1% YoY to | 970.8 crore in line with EPS CY16E Changed from | 13.8 to | 14.2 our estimate of | 966 crore. Volume growth of ~5.2% YoY to ~56.5 EPS CY17E Changed from | 14.9 to | 15.1 million litre mainly contributed to the growth seen in the topline YoY Rating Unchanged whereas net realisation remained flat YoY at ~| 171.5 per litre

• EBITDA increased 14.9% YoY to | 317.3 crore above our estimate of Quarterly performance | 278.5 crore due to higher gross margins of ~| 97.9 per litre in Q2CY16 Q2CY15 YoY (%) Q1CY16 QoQ (%) Q2CY16 vs. | 89.4 per litre in Q2CY15 (our estimate: | 90.2 per litre) Revenue 970.8 923.6 5.1 855.7 13.5 • Depreciation increased sharply by 58.5% YoY to | 14.9 crore (our EBITDA 317.3 276.2 14.9 255.2 24.3 estimate: | 9 crore). Subsequently, PAT during the quarter increased EBITDA (%) 32.7 29.9 278 29.8 286 bps 12.1% YoY to | 206.9 crore, above our estimate of | 188.1 crore PAT 206.9 184.5 12.1 172.4 20.0 Lower raw material costs and change in product mix boost margins

Key financials Majority of Castrol’s raw material costs like base oil and additives are | Crore CY14 CY15 CY16E CY17E crude oil derivatives. With the sharp decline in crude oil prices over the Revenues 3,392.3 3,298.0 3,480.6 3,702.3 past months, raw materials costs have come down, which has led to EBITDA 716.7 894.8 1,053.4 1,112.4 improvement in margins. However, with the increase in the crude oil Net Profit 474.5 615.2 702.1 745.9 prices QoQ, increase in margins due to raw material decline would be EPS (|) 9.6 12.4 14.2 15.1 subdued in the next quarter. Overall, the net realisation is expected to

increase marginally from | 171.9 per litre in CY15 to | 173.4 per litre in Valuation summary CY17E due to better product sales mix and the raw material cost is CY14 CY15 CY16E CY17E expected to decline from | 83.8 per litre in CY15 to | 79.9 per litre in P/E 45.9 35.4 31.0 29.2 CY17E. We expect Castrol’s EBITDA to increase from | 46.8 per litre in Target P/E 47.9 37.0 32.4 30.5 CY15 to | 52.3 per litre in CY17E. However, sharp volatility in crude oil EV / EBITDA 29.8 23.5 20.0 18.8 prices along with foreign exchange volatility (~50% of raw materials are P/BV 43.8 37.8 33.9 31.4 imported) is a key risk to our recommendation. RoNW (%) 95.5 106.9 109.5 107.7 RoCE (%) 137.0 148.7 157.8 155.2 Focus on personal mobility segment to drive growth

Castrol India has been witnessing double digits growth in personal Stock data mobility segment this year and positive growth in CV, industrial segments Particular Amount on account of improved economic sentiment and focussed strategy in Market Capitalization (| Crore) 21,760.6 specific segments. Hence, Castrol’s volume are expected to increase from Total Debt (CY15) (| Crore) - 191.1 million litre in CY15 to 212.7 million litre in CY17E, due to the Cash and Investments (CY15) (| Crore) 696.5 continued strong focus on the personal mobility segment, which is EV (| Crore) 21,064.1 expected to increase contribution to the overall Castrol’s portfolio from 52 week H/L 513/360 the current ~40% to ~50% of the portfolio, in spite of the increasing Equity capital (| Crore) 247.3 competitive intensity in segment. Face value (|) 5.0

Bet on largest private player with strong pricing power Price performance Castrol’s strong brand positioning and superior distribution network Return %1M3M6M12Mallows it to command higher pricing power and premium for its products Castrol India 12.5 7.5 (1.7) (13.8) over its competitors in spite of decline in base oil prices. We believe that Tide Water Oil 5.6 (10.6) 14.6 46.1 Castrol, which is the price maker in the Indian automotive lubricant Gulf Oil Lube. 11.6 14.6 18.6 20.2 market, will maintain stable realisations, going forward. With respect to industrial lubricant market, the company continues to report strong

volume growth in spite of sluggish industrial growth due to focus on Research Analyst specific segments and push for its power brands. Going forward, we Mayur Matani expect continued good performance from Castrol on account of a [email protected] subdued crude oil prices and rising lubricant demand. The company’s Harshal Mehta focus on the personal mobility segment will remain the key driver for the [email protected] automotive lubricant business and it will create value for shareholders. We value Castrol India at ~33x CY17E EPS of | 15.1 to arrive at a target price of | 500 with a BUY rating.

ICICI Securities Ltd | Retail Equity Research

Variance analysis Q2CY16 Q2CY16E Q2CY15 YoY (%) Q1CY16 QoQ (%) Comments Total Revenues 970.8 966.0 923.6 5.1 855.7 13.5 Higher YoY revenue growth due to ~5.2% YoY growth in total volumes Raw materials costs 417.9 457.9 444.1 -5.9 391.9 6.6 Employees Cost 42.6 49.0 44.5 -4.3 44.1 -3.4 Other Expenses 193.0 180.6 158.8 21.5 164.5 17.3 Total Expenditure 653.5 687.5 647.4 0.9 600.5 8.8 EBITDA 317.3 278.5 276.2 14.9 255.2 24.3 EBITDA margins higher than estimates on account of higher-than-expected EBITDA margins (%) 32.7 28.8 29.9 278 bps 29.8 286 bps gross margins Depreciation 14.9 9.0 9.4 58.5 8.6 73.3 Higher than estimate due to one-off of | 4 crore EBIT 302.4 269.5 266.8 13.3 246.6 22.6 Interest 0.7 0.5 0.2 250.0 0.4 75.0 Other Income 17.3 16.0 15.2 13.8 18.7 -7.5 Extra Ordinary Item 0.0 0.0 0.0 NA 0.0 NA PBT 319.0 285.0 281.8 13.2 264.9 20.4 Total Tax 112.1 96.9 97.3 15.2 92.5 21.2 PAT 206.9 188.1 184.5 12.1 172.4 20.0

Key Metrics Exchange rate (|/$) 67.1 67.1 63.5 5.7 66.1 1.5 Volume increase YoY due to higher YoY growth across personal mobility, Volumes (mn litre) 56.5 56.3 53.7 5.2 50.1 12.6 commercial vehicle and industrial segments Net realisation remained flat YoY in spite of the higher competetive intensity in automotive as well as industrial lubricant business, due to better product Net Realisation (|/litre) 171.5 170.8 171.5 0.0 169.9 0.9 mix and better growth in power brands Gross margins per litre came higher than our expectations due to lower than Gross Margins (|/litre) 97.9 90.2 89.4 9.6 92.5 5.9 expected raw material costs. EBITDA (|/litre) 56.2 49.4 51.5 9.2 50.9 10.4 Higher than estimates due to higher gross margins per litre

Source: Company, ICICIdirect.com Research

Change in estimates CY16E CY17E (| Crore) Old New % Change Old New % Change Comments Revenue 3,468.5 3,480.6 0.3 3,683.7 3,702.3 0.5 EBITDA 1,008.2 1,053.4 4.5 1,092.3 1,112.4 1.8 EBITDA Margin (%) 29.1 30.3 120 bps 29.7 30.0 39 bps Change in product mix led to higher EBITDA margin estimates PAT 680.9 702.1 3.1 737.0 745.9 1.2 EPS (|) 13.8 14.2 3.1 14.9 15.1 1.2

Source: Company, ICICIdirect.com Research

Assumptions Current Earlier CY14 CY15 CY16E CY17E CY16E CY17E Comments Exchange rate (|/$) 61.0 64.2 67.2 67.0 67.2 67.0 Volumes (mn litre) 195.9 191.1 202.6 212.7 202.5 212.6 Volume levels remain largely unchanged Net Realisation (|/litre) 172.6 171.9 170.8 173.4 170.5 172.6 Better gross margins due to higher contribution from personal mobility segment Gross Margins (|/litre) 74.3 88.8 93.7 94.2 91.4 93.5 and power brands EBITDA (|/litre) 36.6 46.8 51.7 52.3 49.7 51.4

Source: Company, ICICIdirect.com Research,

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Company Analysis Focus on personal mobility segment to drive growth Castrol India has been witnessing double digit growth in the personal mobility segment this year and positive growth in CV, industrial segments on account of improved economic sentiment and focussed strategy on specific segments. Hence, Castrol’s volume are expected to increase from 191.1 million litre in CY15 to 212.7 million litre in CY17E, due to the continued strong focus on the personal mobility segment, which is expected to increase contribution to the overall Castrol’s portfolio from the current ~40% to ~50% of the portfolio, in spite of the increasing competitive intensity in segment.

Exhibit 1: Volume trend

250 212.7 202.6 195.9 191.1 200

150

million litres 100

53.7 56.5 46.0 45.3 46.1 50.1 50

0 CY14 Q1CY15 Q2CY15 Q3CY15 Q4CY15 CY15 Q1CY16 Q2CY16 CY16E CY17E

Source: Company, ICICIdirect.com Research

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Expect stable realisations to be maintained, going forward We believe that Castrol, which is the price maker in the Indian automotive lubricant market, will maintain stable realisations, going forward. Castrol would continue to command pricing premium to other private players due to better product mix and brand building. With respect to industrial lubricant market, we expect Castrol to pass on the benefits of the lower base oil prices to the consumers.

Exhibit 2: Automotive and non automotive realisations

200

176.8 176.6 176.5 175.3 178.3 180 175.1 175.8 173.8 175.5 175.7

160 152.3 154.1 151.3 154.1 151.6 152.7 146.2 146.0 147.9 142.0

| per litre 140

120

100 CY14 Q1CY15 Q2CY15 Q3CY15 Q4CY15 CY15 Q1CY16 Q2CY16 CY16E CY17E

Automotive Realisations Non-Automotive Realisations

Source: Company, ICICIdirect.com Research

The automotive realisation is expected to increase from | 175.8 per litre in CY15 to | 178.3 per litre in CY17E. The non-automotive realisation is expected to decline from | 152.7 per litre in CY15 to | 147.9 per litre in CY17E. Hence, on a blended basis, the net realisation is expected to marginally increase from | 171.9 per litre in CY15 to | 173.4 per litre in CY17E.

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Lower raw material costs and change in product mix boost margins Majority of Castrol’s raw material costs like base oil and additives are crude oil derivatives. With the sharp decline in crude oil prices over the past months, raw materials costs have come down, which has lead to improvement in margins. However, with the increase in the crude oil prices QoQ, increase in margins due to raw material decline would be subdued in the next quarter.

Exhibit 3: Net realisation, raw material cost and gross margin trends

200

160

120 94.2 80 97.9 | per litre 93.7 86.3 89.4 88.8 90.8 88.8 92.5 74.3 40

0 CY14 Q1CY15 Q2CY15 Q3CY15 Q4CY15 CY15 Q1CY16 Q2CY16 CY16E CY17E

Net Realisation Raw Material Costs Gross Margins

Source: Company, ICICIdirect.com Research

Overall, the net realisation is expected to increase marginally from | 171.9 per litre in CY15 to | 173.4 per litre in CY17E due to better product sales mix while the raw material cost is expected to decline from | 83.8 per litre in CY15 to | 79.9 per litre in CY17E. We expect Castrol’s EBITDA to increase from | 46.8 per litre in CY15 to | 52.3 per litre in CY17E. However, Sharp volatility in crude oil prices along with foreign exchange volatility (~50% of raw materials are imported) is a key risk to our recommendation.

Exhibit 4: Castrol EBITDA and EBITDA Margins trend

1500 35 30.3 30.0 1200 27.1 30

900 25 % 21.6

| crore 21.1 1053.4 1112.4 600 894.8 20 687.6 716.7

300 15 CY13 CY14 CY15 CY16E CY17E

EBITDA EBITDA Margins

Source: Company, ICICIdirect.com Research

The EBITDA is expected to increase from | 894.8 crore in CY15 to | 1112.4 crore in CY17E and EBITDA margin is expected to increase 292 bps from 27.1% in CY15 to 30% in CY17E.

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Outlook & valuation Castrol’s strong brand positioning and superior distribution network allows it to command higher pricing power and premium for its products over its competitors in spite of decline in base oil prices. We believe that Castrol, which is the price maker in the Indian automotive lubricant market, will maintain stable realisations, going forward. With respect to industrial lubricant market, the company continues to report strong volume growth in spite of sluggish industrial growth due to focus on specific segments and push for its power brands. Going forward, we expect continued good performance from Castrol on account of a subdued crude oil prices and rising lubricant demand. The company’s focus on the personal mobility segment will remain the key driver for the automotive lubricant business and it will create value for shareholders. We value Castrol India at ~33x CY17E EPS of | 15.1 to arrive at a target price of | 500 with a BUY rating.

Exhibit 5: Castrol P/E multiple chart 600

500

400 (|) 300

200

100 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15 Oct-10 Oct-11 Oct-12 Oct-13 Oct-14 Oct-15 Apr-10 Apr-11 Apr-12 Apr-13 Apr-14 Apr-15 Apr-16 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Price 35x 33x 31x 29x 27x 24x 22x

Source: Reuters, ICICIdirect.com Research

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Recommended history vs. Consensus

700 70.0

60.0 600 50.0

500 40.0 (|) (%) 400 30.0 20.0 300 10.0

200 0.0 Jul-14 Sep-14 Dec-14 Feb-15 May-15 Jul-15 Oct-15 Dec-15 Mar-16 May-16 Jul-16

Price Idirect target Consensus Target Mean % Consensus with BUY

Source: Bloomberg, Company, ICICIdirect.com Research

Key events Date Event Feb-10 Castrol announces 1:1 bonus Jul-10 Castrol sells certain assets to Hasco Oil Co. Jul-12 Castrol India announces 1:1 bonus Aug-13 Castrol announces interim dividend of | 3.50/share. Jul-14 Castrol's Q2 net sales rose 6% to | 910.3 crore and its net profit dipped 19% to 124.4 crore Jan-15 Crude oil prices falls below $55/bbl Sep-15 Closure of the Castrol Wadala facility

Source: Company, ICICIdirect.com Research

Top 10 Shareholders Shareholding Pattern Rank Name Latest Filing Date % O/S Position (m) Change (m) (in %) Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 1 Castrol, Ltd. 19-May-16 59.4 293.9 -56.9 Promoter 71.0 71.0 71.0 71.0 59.5 2 Life Insurance Corporation of India 31/Mar/16 5.1 25.4 2.6 FII 5.7 5.4 6.3 5.9 9.7 3 Aberdeen Asset Management (Asia) Ltd. 31-May-16 2.6 13.0 6.0 DII 8.1 8.4 7.6 7.9 13.4 4 ICICI Prudential Asset Management Co. Ltd. 30/Jun/16 1.5 7.6 0.0 Others 15.2 15.1 15.1 15.2 17.4 5 Birla Sun Life Asset Management Company Ltd. 30-Jun-16 1.2 6.0 0.0 6 Reliance Nippon Life Asset Management Limited 30/Jun/16 1.1 5.6 -0.1 7 The Vanguard Group, Inc. 30-Jun-16 0.7 3.3 -0.1 8 Matthews International Capital Management, L.L.C. 31/Mar/16 0.5 2.3 0.0 9 SBI Funds Management Pvt. Ltd. 31-May-16 0.5 2.2 1.3 10 IDFC Asset Management Company Private Limited 30/Jun/16 0.4 2.2 0.0

Source: Reuters, ICICIdirect.com Research

Recent Activity Investor name Investor name Investor name Value (m) Shares (m) Investor name Value (m) Shares (m) Aberdeen Asset Management (Asia) Ltd. 33.48 6.00 Castrol, Ltd. -317.34 -56.87 Life Insurance Corporation of India 14.54 2.58 The Vanguard Group, Inc. -0.53 -0.09 SBI Funds Management Pvt. Ltd. 7.53 1.35 Reliance Nippon Life Asset Management Limited -0.44 -0.08 L&T Investment Management Limited 1.95 0.35 JM Financial Asset Management Pvt. Ltd. -0.19 -0.03 UTI Asset Management Co. Ltd. 1.85 0.33 Geode Capital Management, L.L.C. -0.13 -0.02

Source: Reuters, ICICIdirect.com Research

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Financial summary

Profit and loss statement | Crore Cash flow statement | Crore (Year-end December) CY14 CY15 CY16E CY17E (Year-end December) CY14 CY15 CY16E CY17E Revenue 3392.3 3298.0 3480.6 3702.3 Profit after Tax 474.5 615.2 702.1 745.9 Growth (%) 6.7 -2.8 5.5 6.4 Less: Dividend Paid 439.9 536.4 636.5 694.4 (Inc.)/(Dec.) in stock in trade 16.8 14.8 -13.6 0.0 Add: Depreciation 36.1 39.0 41.6 37.6 Raw material Costs 1760.5 1388.4 1406.5 1556.6 Add: Others 0.0 0.0 0.0 0.0 Purchase of Products 160.2 197.6 183.7 142.4 Cash Profit 61.9 129.7 107.2 89.2 Employee Costs 161.6 176.6 183.8 198.5 Increase/(Decrease) in CL 131.5 91.0 44.3 76.9 Other Expenditure 576.5 625.8 666.8 692.3 (Increase)/Decrease in CA -18.3 80.9 -98.3 -50.1 Op. Expenditure 2,675.6 2,403.2 2,427.2 2,589.8 CF from Operating Activities 175.0 301.5 53.2 116.0 EBITDA 716.7 894.8 1053.4 1112.4 Purchase of Fixed Assets 48.5 36.5 20.4 15.0

Growth (%) 4.2 24.9 17.7 5.6 (Inc)/Dec in Investments 0.0 0.0 0.0 0.0 Depreciation 36.1 39.0 41.6 37.6 Others 1.0 2.0 3.0 3.0 EBIT 680.6 855.8 1011.9 1074.8 CF from Investing Activities -48.5 -36.5 -20.4 -15.0 Interest 2.4 0.8 2.1 2.0 Inc/(Dec) in Loan Funds 0.0 0.0 0.0 0.0 Other Income 48.1 95.9 67.0 66.0 Inc/(Dec) in Sh. Cap. & Res. -289.3 0.1 -0.1 0.0 PBT 726.3 950.9 1076.8 1138.8 Others 0.0 0.0 0.0 0.0 Growth (%) -4.7 30.9 13.2 5.8 CF from financing activities -289.3 0.1 -0.1 0.0 Tax 251.8 335.7 374.6 392.9 Change in cash Eq. -162.8 265.1 32.7 101.0 Reported PAT 474.5 615.2 702.1 745.9 Op. Cash and cash Eq. 594.2 431.5 696.5 729.2 Growth (%) -6.7 29.7 14.1 6.2 Cl. Cash and cash Eq. 431.5 696.5 729.2 830.2

EPS 9.6 12.4 14.2 15.1 Source: Company, ICICIdirect.com Research Source: Company, ICICIdirect.com Research

Balance sheet | Crore Key ratios

(Year-end December) CY14 CY15 CY16E CY17E (Year-end December) CY14 CY15 CY16E CY17E Source of Funds Per share data (|) Equity Capital 247.3 247.3 247.3 247.3 Book Value 10.0 11.6 13.0 14.0 Preference capital 0.0 0.0 0.0 0.0 Cash per share 8.7 14.1 14.7 16.8 Reserves & Surplus 249.5 328.3 393.9 445.5 EPS 9.6 12.4 14.2 15.1 Shareholder's Fund 496.8 575.6 641.2 692.8 Cash EPS 10.3 13.2 15.0 15.8 Loan Funds 0.0 0.0 0.0 0.0 DPS 9.0 10.0 11.0 12.0 Deferred Tax Liability -61.8 -49.9 -49.9 -49.9 Profitability & Operating Ratios Minority Interest 0.0 0.0 0.0 0.0 EBITDA Margin (%) 21.1 27.1 30.3 30.0 Source of Funds 435.0 525.7 591.3 642.8 PAT Margin (%) 14.0 18.7 20.2 20.1 Fixed Asset Turnover (x) 18.1 17.8 21.2 26.2

Application of Funds Inventory Turnover (Days) 39.3 33.7 39.0 39.0 Gross Block 376.2 391.5 406.5 421.5 Debtor (Days) 29.2 26.2 27.0 27.0 Less: Acc. Depreciation 204.1 242.7 278.8 316.4 Current Liabilities (Days) 74.1 78.6 74.0 74.0 Net Block 172.1 148.8 127.7 105.1 Return Ratios (%) Capital WIP 15.7 36.4 36.4 36.4 RoE 95.5 106.9 109.5 107.7 Total Fixed Assets 187.7 185.3 164.1 141.6 RoCE 137.0 148.7 157.8 155.2 Investments 0.0 0.0 0.0 0.0 RoIC 1,041.8 NA NA NA Inventories 365.5 304.6 371.9 395.6 Valuation Ratios (x) Debtor 271.5 236.5 257.5 273.9 PE 45.9 35.4 31.0 29.2 Cash 431.5 696.5 729.2 830.2 Price to Book Value 43.8 37.8 33.9 31.4 Loan & Advance, Other CA 173.9 188.9 198.9 208.9 EV/EBITDA 29.8 23.5 20.0 18.8 Total Current assets 1242.3 1426.5 1557.4 1708.5 EV/Sales 6.3 6.4 6.0 5.7

Current Liabilities 688.2 710.2 705.7 750.6 Leverage & Solvency Ratios Provisions 306.8 375.8 424.7 456.7 Debt to equity (x) 0.0 0.0 0.0 0.0 Total CL and Provisions 995.1 1086.0 1130.3 1207.2 Interest Coverage (x) 283.6 1,069.8 481.8 537.4 Net Working Capital 247.2 340.4 427.1 501.3 Debt to EBITDA (x) 0.0 0.0 0.0 0.0 Miscellaneous expense 0.0 0.0 0.0 0.0 Current Ratio 1.2 1.3 1.4 1.4 Application of Funds 435.0 525.7 591.3 642.8 Quick ratio 0.9 1.0 1.0 1.1

Source: Company, ICICIdirect.com Research Source: Company, ICICIdirect.com Research

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ICICIdirect.com coverage universe (Oil & Gas)

CMP M Cap EPS (|) P/E (x) EV/EBITDA (x) RoCE (%) RoE (%) Sector / Company (|) TP(|) Rating (| Cr) FY15 FY16E FY17E FY15 FY16E FY17E FY15 FY16E FY17E FY15 FY16E FY17E FY15 FY16E FY17E Bharat (BHAPET) 590 502 Hold 42,662 35.2 51.4 47.1 21.0 16.8 11.5 13.0 11.6 9.0 14.6 16.2 21.3 20.6 22.3 27.4 (CAIIND) 193 209 Hold 36,606 23.9 -50.3 5.6 3.0 8.1 -3.8 2.6 4.1 10.0 19.8 10.1 0.5 21.6 7.6 -19.3 Castrol India (CASIND) 440 500 Buy 24,728 9.6 12.4 14.2 45.9 35.4 31.0 29.8 23.5 20.0 137.0 148.7 157.8 95.5 106.9 109.5 GAIL (India) (GAIL) 387 420 Buy 49,090 34.5 24.0 18.1 11.2 16.2 21.4 8.7 12.2 13.0 15.1 9.6 7.6 16.2 10.4 7.5 (GUJGAS) 571 545 Hold 7,862 2.1 32.2 13.0 276.5 17.7 44.0 19.5 9.8 14.0 5.7 16.6 10.8 1.7 22.3 8.5 Gujarat State Petronet (GSPL) 130 152 Buy 7,323 7.9 9.9 11.3 16.5 13.1 11.5 9.7 7.8 6.9 13.5 16.2 17.2 11.2 12.7 13.1 Gulf Oil Lubricants (GULO) 604 600 Buy 2,994 NA 15.6 20.2 NA 38.7 29.9 NA 23.4 18.6 NA 30.9 34.6 NA 41.4 40.4 (HINPET) 1,244 1,040 Buy 42,173 51.1 80.6 113.9 24.3 15.4 10.9 15.3 11.0 8.0 5.8 10.2 13.2 11.5 17.1 21.0 (INDOIL) 541 470 Buy 131,352 28.9 21.7 42.8 18.7 24.9 12.6 8.3 12.9 6.5 6.3 4.6 12.0 10.6 7.8 14.1 (INDGAS) 640 640 Buy 8,960 25.7 31.3 29.7 24.9 20.5 21.5 11.5 11.2 11.0 27.0 28.7 25.4 20.4 20.9 17.2 Mangalore Refinery (MRPL) 83 77 Hold 14,547 3.4 -9.8 6.6 24.2 -8.5 12.7 12.5 -6.4 4.2 2.0 -17.9 8.1 8.5 -32.3 17.9 Limited (OILIND) 372 350 Hold 22,362 49.6 41.7 38.8 7.5 8.9 9.6 5.1 6.2 6.1 9.4 9.4 8.4 14.4 11.7 10.4 ONGC (ONGC) 225 215 Hold 201,056 31.0 21.4 16.5 7.6 11.0 14.2 3.6 4.1 4.8 15.2 10.3 9.7 15.5 9.6 7.7 Petronet LNG (PETLNG) 301 305 Hold 22,575 9.5 11.8 12.2 31.7 25.6 24.7 16.4 17.3 14.1 14.5 13.5 15.0 14.3 15.5 14.3 Source: Company, ICICIdirect.com Research

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RATING RATIONALE ICICIdirect.com endeavours to provide objective opinions and recommendations. ICICIdirect.com assigns ratings to its stocks according to their notional target price vs. current market price and then categorises them as Strong Buy, Buy, Hold and Sell. The performance horizon is two years unless specified and the notional target price is defined as the analysts' valuation for a stock.

Strong Buy: >15%/20% for large caps/midcaps, respectively, with high conviction; Buy: >10%/15% for large caps/midcaps, respectively; Hold: Up to +/-10%; Sell: -10% or more;

Pankaj Pandey Head – Research [email protected]

ICICIdirect.com Research Desk, ICICI Securities Limited, 1st Floor, Akruti Trade Centre, Road No 7, MIDC, Andheri (East) – 400 093 [email protected]

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Disclaimer

ANALYST CERTIFICATION We /I, Mayur Matani, MBA and Harshal Mehta, MTech research analysts, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our views about the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report. Terms & conditions and other disclosures:

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It is confirmed that Mayur Matani, MBA and Harshal Mehta, MTech, research analysts of this report have not received any compensation from the companies mentioned in the report in the preceding twelve months. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions.

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