Castrol India shares experienced a remarkable surge of 11.63% on March 6, 2025, following reports that Saudi Aramco is considering a potential bid for BP Plc’s lubricant business. The stock climbed to ₹248.29 on the Bombay Stock Exchange (BSE), marking its highest intraday gain in the past seven months. This development has caught the attention of investors, leading to high trading volumes and renewed interest in Castrol India.
Why Did Castrol India Share Price Jump?
The primary reason behind the sudden spike in Castrol India’s share price is the speculation that Saudi Aramco is planning to acquire BP’s lubricant business, which operates under the Castrol brand. According to Bloomberg reports, Saudi Aramco, the world’s largest energy company, is exploring options to bid for part or all of BP’s lubricant assets. This move is seen as part of Aramco’s strategy to expand its footprint in fast-growing markets like India.
Aramco is particularly interested in combining Castrol’s business with Valvoline, a lubricant brand it acquired in 2023 for $2.65 billion. If the deal materializes, it could significantly boost Castrol India’s market position and enhance its product portfolio.
Castrol India Stock Performance
At 12:21 PM on March 6, Castrol India shares were trading at ₹248.29, up 11.63% from the previous closing price of ₹222.33. The stock opened at ₹232 and touched an intraday high of ₹248.29. The trading volume stood at 25 million shares, with a total turnover of ₹60,567 lakhs.
Over the past one year, Castrol India has delivered a 4.79% return, outperforming benchmark indices like the Sensex. The company’s three-year return stands at 104.80%, far surpassing the Sensex’s 34.34% return during the same period.
Strategic Review by BP
Last month, BP announced that it is conducting a strategic review of its Castrol lubricants business to accelerate the next phase of growth. BP may consider selling a stake in Castrol to improve its balance sheet and unlock shareholder value. The review is part of BP’s broader strategy to optimize its business portfolio.
“Castrol is a leading global lubricants brand, serving customers in over 150 countries. The strategic review will explore all options to maximize value creation,” BP said in a statement.
Future Outlook for Castrol India
Market analysts believe that Castrol India’s stock could touch ₹260-270 by the end of 2025 if the acquisition deal goes through. The company’s strong financial performance, high dividend yield of 5.40%, and dominant market position make it an attractive investment option.
However, investors should remain cautious due to the stock’s high valuation ratios and market volatility. The company’s current P/E ratio of 25.71 is above the industry average, indicating that the stock may be overvalued in the short term.
Conclusion
The buzz surrounding Saudi Aramco’s potential bid for BP’s lubricant business has triggered a significant rally in Castrol India’s share price. While the acquisition could unlock tremendous value for Castrol India, investors should closely monitor the outcome of BP’s strategic review and market developments before making investment decisions.