Gulf Oil's Strong Growth Momentum Expected to Continue

Gulf Oil's Impressive Performance

Gulf Oil (GOLI) has shown a remarkable 7% year-over-year growth in its core lubricant business over the last 11 quarters, which is twice the industry growth rate. This growth is expected to continue, driven by brand strength, strong relationships with original equipment manufacturers (OEMs), and effective awareness campaigns for customers, mechanics, and service stations.

Key Factors Driving Growth

• Brand strength and penetration: Gulf Oil's strong brand reputation and increasing market presence are key drivers of growth.
• Strong OEM relationships: The company's partnerships with OEMs are helping to boost sales and expand its customer base.
• Awareness campaigns: Educational campaigns for customers, mechanics, and service stations are increasing awareness and driving demand for Gulf Oil's products.
• Proven product quality: The company's high-quality products are meeting customer needs and helping to build brand loyalty.

Electric Vehicle (EV) Diversification

Gulf Oil's EV diversification efforts are also gaining traction, with significant progress seen in Tirex's scale and profitability. This expansion into the EV sector is expected to contribute to the company's long-term growth and success.

Challenges and Outlook

However, the company may face some near-term challenges, including a potential dip in core margins due to fluctuations in LOBS prices and the depreciation of the Indian rupee (INR). Despite this, Gulf Oil's strong growth momentum is expected to continue, with a revised target price of INR 1,610. Investors are advised to reiterate their 'buy' position in the company.

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