Castrol India was the biggest gainer on Friday on renewed buying support.
By 13:50 IST, the scrip of the lubricants major was up by 2.89% at Rs 190.35 on the BSE. A volume of 16,891 shares was recorded on the counter. Between 28 February and 6 March 2003, the scrip had shed 6% to Rs 185 from Rs 197. In two months between 10 December 2002 and 6 March 2003, the scrip had lost 22.25% to Rs 185 from Rs 237.95.
Dealers said the renewed buying on the Castrol India counter was on bargain hunting after a huge fall in the last few sessions. Castrol India is considered to be a safe stock as it has relatively lesser volatility.
According to players, the Castrol India stock is unlikely to slip further from the current levels. On the other hand, a US-Iraq war may hit the company's margins as crude oil is the key raw material in the manufacture of lubricants, whose prices may gallop.
Meanwhile, the market slipped today as players offloaded stocks ahead of the submission of the report on Iraq by the UN weapons inspectors to the Security Council. Also, the US will make clear its position on the Iraq stand-off on Saturday.
For Q4, Castrol India recorded a 33.3% rise in net profit to Rs 40.01 crore on a 3.64% drop in total income to Rs 311.42 crore (Rs 3.11 billion).
For FY 2002, the lubricants major registered a 41% rise in net profit to Rs 152.89 crore (Rs 1.52 billion) on a marginal fall in total income to Rs 1,168.63 crore (Rs 11.68 billion).
It may be recalled that BP Amoco had acquired control of Castrol India through the global acquisition of the company's parent, Castrol UK. After a protracted legal battle, BP Amoco was compelled to make an open offer for 20% of Castrol India's shares at a price of over Rs 425 per share.
Promoters hold 71.03% stake in Castrol India. The public and institutions hold 19.84% and 6.89% , respectively.
BSE code: 500870
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