Buy-back rumors keep Castrol India hot

Market grapevine indicate that BP may even look at delisting its Indian subsidiary at a ‘much higher price’, in which it holds a majority 70.92% stake. However there was no clarification from the company in this regard

Castrol India advanced 25.43% to Rs 272.50 on 9 May, from Rs 215.65 on 9 April, as buying momentum continued on the back of such rumors.

The company manufactures and markets a range of automotive and industrial lubricants under two brands: Castrol and BP.

It has leadership positions in most of the segments in which it operates including passenger-car engine oils, premium two-stroke and four-stroke oils and multigrade diesel engine oils.

Castrol India posted rose 29.18% rise in net profit to Rs 41.52 crore in the fourth quarter ended March 2007, compared with Rs 32.14 crore in the fourth quarter ended March 2006. Sales rose 17.67% to 442.11 crore (Rs 375.73 crore)