Reports of fresh buying interest in BP's lubricant business, which operates under the globally recognized Castrol brand, have propelled Castrol India's stock upwards. On May 29, 2025, shares of Castrol India experienced a surge of approximately 6% on the Bombay Stock Exchange (BSE), reflecting positive market sentiment fueled by these reports.
BP is undertaking a strategic review of its Castrol lubricant business, with a potential sale as a strong possibility. This review is part of a broader initiative by BP to divest $20 billion in assets by 2027, as it shifts its focus back towards investments in fossil fuels while reducing capital expenditure on renewable energy projects. The potential sale of Castrol could generate an estimated $10 billion, providing BP with a substantial cash infusion to strengthen its balance sheet.
Several prominent entities have expressed interest in acquiring BP's lubricant business. Reliance Industries, owned by Mukesh Ambani, has emerged as a potential suitor. Additionally, buyout firms such as Apollo Global Management and Lone Star Funds are also reportedly considering a bid. BP has shared initial details with other interested parties, including Brookfield Asset Management and Stonepeak Partners. Furthermore, Saudi Aramco is also in the mix exploring opportunities to bid for all or part of the business.
Castrol India has a market capitalization of around $2.5 billion. The company has a strong presence in rapidly expanding markets such as India. Saudi Aramco's interest in Castrol is particularly focused on its operations in these high-growth regions.
Analysts have generally maintained a positive outlook on Castrol India, particularly after the company's Q4 results. Motilal Oswal Financial Services Ltd noted that Castrol India has a strong brand legacy and is confident in its ability to sustain profitability through an improved product mix, strict cost control measures, and the introduction of advanced products that offer better value.
From a technical analysis perspective, Castrol India's stock price has shown signs of a bullish reversal, forming a 34-week double bottom, indicating a strong potential for an upward trend.
Castrol India Ltd is primarily involved in the manufacturing and marketing of automotive and industrial lubricants and related services. It offers a range of oil lubricants and other fluids for various applications, including cars, motorcycles, commercial vehicles, industrial use, the energy sector, marine applications, and IT cooling and data centers. The company was founded in 1910 and is based in Mumbai, India, operating as a subsidiary of Castrol Limited.
