Rs 375,00,00,000 order: This lubricants company received an order from Abu Dhabi National Oil Company; details inside!

The shares of the company have a PE of 15x, an ROE of 15 per cent and an ROCE of 22 per cent.

Texol Lubritech FZC, a subsidiary of Gandhar Oil Refinery (India) Ltd, has secured a significant three-year contract with Abu Dhabi National Oil Company for Distribution PJSC (ADNOC Distribution), an international entity. Under this contract, Texol Lubritech FZC will manufacture, package, label and supply products to ADNOC Distribution. The contract is estimated to be worth USD 45 million (approximately Rs 375 crore) annually for each of the years 2024, 2025 and 2026, with a forecasted average annual volume of 30 million litres of product.

Established in 1992, Gandhar Oil Refinery (India) Ltd. is a leading manufacturer of speciality oils in India. They cater primarily to the consumer and healthcare industries with their PHPO (personal care, healthcare, and performance oils) division. This division offers a wide range of products including white oils, waxes, and jellies. White oils, for example, are highly refined mineral oils known for their purity, stability, and lack of colour or odour. These features make them ideal ingredients in various consumer and healthcare products.

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Gandhar Oil also produces lubricants and process and insulating oils. Their lubricants include automotive oils like engine oil and gear oil, as well as industrial oils used to keep machinery running smoothly. Additionally, they manufacture transformer oils which provide insulation and cooling for transformers, and rubber processing oils which aid in the mixing and blending of rubber during production. Notably, Gandhar Oil offers over 440 products across these categories under their "Divyol" brand and boasts a diverse customer base of over 3,500. To support their domestic and international operations, they operate three manufacturing facilities across India and Sharjah, covering a total area of over 1,28,000 square meters.

The company has a market cap of over Rs 2,100 crore with a 64.63 per cent stake in the company owned by the promoters. The shares of the company have a PE of 15x, an ROE of 15 per cent and an ROCE of 22 per cent. Investors should keep an eye on this Small-Cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.