GP Petroleums Limited

Energy — Oil & Gas Refining & Marketing · NSE

₹70.80+₹1.53 (+2.21%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

The 60-second version of GP Petroleums Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

GP Petroleums Limited formulates, manufactures, and markets industrial and automotive lubricants, rubber process oils, transformer oils, greases, and other specialties in India.

IndustryOil & Gas Refining & Marketing

SectorEnergy

Employees258

Annual revenue₹641 Cr

How does it make money?

Turns over ₹641 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 258 employees supports ₹2.49 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.49 Cr

Who are its competitors?

The closest listed comparisons in its industry are RELIANCE INDUSTRIES LTD, OIL AND NATURAL GAS CORP., BHARAT PETROLEUM CORP LT, INDIAN OIL CORP LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 10.1% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE15.4%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -19% while net margin moved +29% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-19%

Margin effect+29%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 6.7% a year
✗ Profit CAGR of only 1.7%

Quality vs. Valuation

Company Quality

46/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

52/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

8.9x

3Y Median

10.0x

40 monthly readings · mean 10.2x · range 4.6x–15.8x

Sector Median

6.9x

median of 4 sector peers

🟢Current valuation is approximately 11% below its 3y median of 10.0x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 29% above the peer median of 6.9x.

vs. its own history

Fair

10.0x median over 40 months · -11%

vs. sector peers

Expensive

6.9x median of 4 peers · +29%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

9.1x

PEG

5.31

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 25% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 12.9% to 10.1% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 high

🔴High leverageFinancial
Debt/Equity of 6.56x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 25% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 6.56x. Interest is payable whether or not the business has a good year.
A premium to the sector to defend
It trades 29% above the peer median. That premium needs a reason that persists, or it closes.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 5%✓ 6.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹7 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✓ 10.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 10.0x✓ 8.9x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

5 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✗ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹361 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

8.9x

Cheap

Cheap against the generic band

P/B Ratio

1.02x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹7.97

Profitable

Profitable on a per-share basis

ROE

7.5%

Weak

Weak capital efficiency

ROCE

10.1%

Moderate

Moderate return on the capital in the business

Debt/Equity

6.56x

High

High leverage

Revenue Growth (YoY)

45.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

220.6%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.71%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹7 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

12.0%

Average

Average margins

Net Margin

5.7%

Average

Average bottom-line conversion

Current Ratio

4.69

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.46

Defensive

Steadier than the market

52W Range Position

96%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

62.9 / 63.8

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

72.7

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹790 Cr	₹655 Cr	₹609 Cr	₹641 Cr	-6.7%
EBITDA	₹43 Cr	₹42 Cr	₹40 Cr	₹42 Cr	-1.0%
EBITDA Margin	5.5%	6.4%	6.6%	6.6%	—
PAT (Net Profit)	₹25 Cr	₹28 Cr	₹26 Cr	₹26 Cr	+1.7%
EPS	₹4.94	₹5.44	₹5.16	₹5.19	+1.7%
ROE	9.1%	9.1%	8.0%	7.5%	—
ROCE	12.9%	11.9%	10.9%	10.1%	—
Total Debt	₹31 Cr	₹18 Cr	₹33 Cr	₹23 Cr	-9.1%
Free Cash Flow	₹10 Cr	₹43 Cr	-₹9 Cr	₹7 Cr	-10.1%

🔴 Revenue has shrunk at 6.7% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (-1.0% a year).

🟢 EBITDA Margin has risen from 5.5% to 6.6% over 3 years (+1.1 pts).

🟡 PAT (Net Profit) has been broadly flat over 3 years (1.7% a year).

🟡 EPS has been broadly flat over 3 years (1.7% a year).

🔴 ROE has fallen from 9.1% to 7.5% over 3 years (-1.7 pts).

🔴 ROCE has fallen from 12.9% to 10.1% over 3 years (-2.8 pts).

🟢 Total Debt has shrunk at 9.1% a year over 3 years.

🔴 Free Cash Flow has shrunk at 10.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹430 Cr

Total Liabilities

₹75 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹44 Cr

Capex

-₹36 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

54.1%

Corporate Actions

Dividend Rate

₹0.5

Ex-Dividend Date

19 Aug 2026

Peer Comparison

Company	P/E	ROE
RELIANCE INDUSTRIES LTD	21.9x	8.3%
OIL AND NATURAL GAS CORP.	6.4x	11.7%
BHARAT PETROLEUM CORP LT	7.3x	17.1%
INDIAN OIL CORP LTD	5.3x	15.4%

Recent News

1 positive1 mixed1 negative3 general

GP Petroleums Upper Circuit Today: Price, Data and Peers

Univest, 15 Oct

GP Petroleums independent director Sukumaran Jeyakrishnan resigns

scanx.trade, 14 Oct

Why You Might Be Interested In GP Petroleums Limited (NSE:GULFPETRO) For Its Upcoming Dividend

Simply Wall Street, 15 AugCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

GP Petroleums: कंपनीचा मोठा विस्तार! **₹44 कोटी** गुंतवून खरेदी करणार IPTPL मधील हिस्सा

Whalesbook, 13 Oct

GP Petroleums approves Rs 44.27 crore Pipavav terminal stake purchase to strengthen storage access

Dalal Street Investment Journal, 13 OctM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

GP Petroleums Ltd Downgraded to Buy Amid Mixed Technicals and Strong Valuation

MarketsMojo, 15 OctAnalyst view

🔴Potentially negativeAn analyst opinion changing, which moves the price without changing the business.

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Risk

WeakGrowth · Profitability

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑