Castrol India share price rises 5% as reports suggest large corporates may be eyeing BP's lubricant business

Stock Market Today: Castrol India share price gained more than 5% during the morning trade on Thursday amid media reports that large corporates such as Reliance Industries and Aramco may be eyeing BP's lubricants business.

A Reuters report dated May 28, quoting Bloomberg, on Wednesday said that BP Plc's Castrol lubricants business is attracting interest from companies such as India's Reliance Industries.

The business has also attracted interest from buyout firms Apollo Global Management and Lone Star Funds, the Bloomberg report said, adding that a deal could fetch between $8 billion and $10 billion.

The news flow around corporates showing interest in BP's Lubricants business has remained strong for a few months now. On March 6, 2025, PTI attributed gains in shares of lubes maker Castrol India, a unit of BP, to news flow suggesting that Saudi Arabia's state-owned oil giant Aramco is considering taking ownership of BP's lubricant brand.

As the developments around BP's lubricant business are being keenly tracked by investors, analysts have maintained positive views on Cactrol India post Q4 results.

Analysts' Views on Castrol India

Motilal Oswal Financial Services post Q4 results said that Castrol India has always enjoyed a strong brand legacy, and that it is confident in its ability to maintain profitability through an improved product mix, stringent cost-control measures, and the launch of advanced products that command better realisation. It said Ebitda margin assumptions are already within the company’s guided range of 22-25%.

MOFSL valued the stock at 25 times price-to-earnings to arrive at a target price of ₹250, reiterating its BUY rating.

Castrol India Share Price Movement

Castrol India share price, which opened at ₹208.75, was slightly higher compared to the previous day's closing price of ₹206.45. Castrol India gained further to an intraday peak of ₹220.50, recording gains of more than 5%.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions