Castrol India share price jumps 30% in FY25, yields 7% dividend. Do you own?

Despite the recent bloodbath in the Indian stock market, Castrol India share price remained under the radar of Dalal Street bulls. While most stocks have given zero returns to their shareholders in 2025, Castrol India shares have delivered over 17 per cent return to its positional investors. Castrol India share price has registered over 13 per cent return in one month after rising from 210.46 to ₹239.19 apiece on the NSE. Castrol India share price has remained on an uptrend throughout FY25. Castrol India’s share price ended at around ₹186 at the end of FY24, and it ended at ₹239.19 on Friday last week, recording a nearly 30 per cent rise in the current financial year. However, long-term investors have one more advantage.

Castrol India was also one of the dividend stocks in FY25. It traded ex-dividend twice in FY25 — on 7th August 2024 for finalising the list of eligible shareholders for ₹3.50 per share interim dividend payment, and it would trade ex-dividend on 18th March 2025 for payment of ₹9.50 per share final dividend. So, Castrol India’s dividend yield in FY25 stood at around 7 per cent ( ₹13 per share dividend against investment of ₹186 per share), which is higher than the bank fixed deposit return given by any bank in this period. However, stock market experts predict more upside in Castrol India’s share price.

Trigger for Castrol India share price rally

Speaking on the reasons that fuel Castrol India’s share price, Avinash Gorakshkar, Head of Research at Profitmart Securities, said, “The major reason for the recent rise is a buzz about a possible acquisition by Saudi Aramco of the British Petroleum’s lubricant’s business. Castrol India, one of the promoter companies of BP, is expected to benefit from this possible acquisition; hence, the market is bullish on the stock. Besides this, in the recent few months, crude oil prices have remained steady, which enabled Castrol India to keep its balance sheet on the positive side. The company has improved its margins and delivered better than expected quarterly earnings, attracting Dalal Street bulls’ attention.” Gorakshkar said that the recent rally in the Castrol India share price could be attributed to the ease in crude oil prices on renewal of the trade war.

Castrol India share price target

Expecting more upside in Castrol India share price, Anshul Jain, Head of Research at Lakshmishree Investment and Securities, said, “Castrol India share price has surged past the 66-day cup and handle breakout at ₹220, backed by strong volume. Currently consolidating around ₹240, forming an inside bar suggests a brief pause before the next move. A breakout above ₹242 could trigger a sharp rally, with the stock likely heading towards ₹295 soon. Investors should watch for sustained momentum above ₹242 to confirm further bullish action.”

Castrol India’s dividend history

As mentioned above, Castrol India’s share price trade ex-date on 7th August 2024 for ₹3.50 per share interim dividend, and it will trade ex-date for ₹9.50 per share final dividend. So, the total dividend announced by Castrol India is ₹13 ( ₹3.50 + ₹9.50) in FY25. If an investor had invested in Castrol India shares at the end of FY24, buying one share at ₹186, its dividend yield would have been around 7 per cent [{( ₹3.50 + ₹9.50) / 186} x 100].

Castrol India’s five-year average ROE stands at 43.8 per cent, while ROCE is much better at 59.5 per cent.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.