Castrol India share price jumps 6% amid reports of potential Saudi Aramco bid for BP’s lubricant business | Stock Market News

Castrol India share price jumped nearly 6% on Thursday following reports that Saudi Aramco is considering a potential bid for BP Plc’s lubricant business. Castrol India shares rallied as much as 5.93% to ₹235.50 apiece on the BSE.

According to a Bloomberg News report, Saudi Aramco, the world’s largest energy company, is evaluating the possibility of acquiring part or all of BP’s lubricant business, which operates under the Castrol brand.

Citing sources familiar with the matter, the report suggested that Aramco may seek to integrate Castrol’s assets with its Valvoline lubricants unit, which it acquired for $2.65 billion in 2023.

Meanwhile, as part of a broader corporate restructuring, BP has initiated a strategic review of the Castrol lubricants business. Bloomberg News previously estimated the unit’s valuation at approximately $10 billion.

Aramco is particularly interested in Castrol’s operations in high-growth markets such as India, the Bloomberg report said. Castrol India Ltd, which is listed on the BSE and NSE, currently has a market capitalization of around $2.5 billion.

Discussions are still in the early stages, and Aramco has not made a final decision regarding the structure of a potential bid or whether it will proceed. Additionally, the Castrol assets have reportedly attracted interest from other potential bidders.

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Castrol India Stock Price Trend

Castrol India share price has gained over 8% in one month and more than 12% on a year-to-date (YTD) basis. While Castrol India stock price has gained only 9% in one year, it has delivered stellar returns of 97% in two years.

Anshul Jain, Head of Research at Lakshmishree Investment and Securities, believes Castrol India share price is witnessing a bullish reversal and has a strong upside potential.

“After a sharp 42% decline over 22 weeks, Castrol India share price has formed a bullish 34-week double bottom, signaling a strong reversal. The stock is now trading above the 50% retracement level ( ₹223) of the entire fall, reinforcing its strength. The second bottom has attracted huge volumes, confirming buying interest. While the stock looks extended on the daily chart, dips toward ₹220 present a great opportunity to accumulate fresh longs,” Jain said.

With momentum shifting in favor of bulls, Castrol India stock appears poised for further upside, making it an attractive pick for investors looking to capitalize on technical strength, he added.

At 10:00 AM, Castrol India shares were trading 3.51% higher at ₹230.10 apiece on the BSE.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.