Rs 1000,00,00,000 Project: This Lubricants Company Signs a Non-Binding MoU with Jawaharlal Nehru Port Authority

The shares of the company have a PE of 20x, an ROE of 15 per cent and an ROCE of 22 per cent.

Gandhar Oil Refinery (India) Limited has announced a significant strategic move by entering into a non-binding Memorandum of Understanding (MoU) with the Jawaharlal Nehru Port Authority. This collaboration aims to develop a terminal at Vadhvan Port for handling containers, bulk, and liquid cargo. The project, with an estimated investment of Rs 1,000 crore, is set to commence in 2030, contingent upon a successful competitive bidding process. The initiative also focuses on creating infrastructure for marine services, intermodal connectivity, and sustainability through digital solutions and robust IT infrastructure. Additionally, the project will emphasise manpower training and skill development. The finalisation of this development will depend on the acceptance of the bid, after which a binding MoU or definitive agreement will be executed.

Gandhar Oil Limited, established in 1992, is a leading manufacturer of white oils, holding a 26.5 per cent market share in India and 9.6 per cent globally. The company operates in three main segments: Personal Care, Healthcare, Performance Oils (PHPO), Lubricants, and Process Insulating Oil (PIO). The PHPO segment is the largest, contributing 69 per cent of its revenue in the first nine months of FY25.

Gandhar Oil has three manufacturing facilities in Taloja, Silvassa, and Sharjah, with a significant expansion completed in FY24, adding substantial capacity to its Taloja and Silvassa plants. The company serves over 4,000 customers, with 70 per cent of its revenue from repeat customers. It exports to over 100 countries, generating 85 per cent of its revenue from international markets. The company is focused on expanding its PHPO division and enhancing contract manufacturing services, aiming to increase exports by developing competitive products.

The company has a market cap of over Rs 1,500 crore with a 65.01 per cent stake in the company owned by the promoters. The shares of the company have a PE of 20x, 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.