SOTL Share Price Target 2024 to 2030 and Its Fundamental Analysis

Welcome to another blog post, In this blog post, we are predicting the SOTL share price target from 2024 to 2030 and fundamental analysis based on major fundamental ratios and price action. after reading this article you will be able to understand the financial health of the SOTL and its future.

SOTL known as Savita Oil Technology Ltd. is an Indian multinational Petroleum specialty company incorporated in 1961 and its headquarters is located in Mumbai.

SOTL is a leading manufacturer of Transformer oils, white mineral oils, automotive oils, lubricating oils, and specialty polymer products.

The company also engaged in the production of revenue renewable energy with a focus on wind energy.

The company is spread across 75 countries worldwide.

Transformer oils are used to insulate and cool Transformers, which are essential for transmitting and distributing electricity.

White mineral oils of applications including pharmaceuticals, cosmetics, and food processing.

Lubricating oils are used to reduce friction and wear in engines and other machinery.

Automotive oils used in automobiles

Specialty polymer products are petroleum jelly,v waxes, and emulsions.

Mr Gautam N Mehra is a Managing director of SOTL with experience of 30 years in the industry.

Mr. Ravindra Pisharody is an independent director of the company with over 38 years of experience.

Steady revenue growth over the past 5 years with a CAGR of around 10%.

Both net and operating profit margins remained stable and are showing slight improvement, indicating efficient operations of the company.

The company has 0 debt on its balance sheet.

The company has a good current ratio of 2.4 %.

The company has a fear-quick ratio of 1.2%.

The debt-to-equity ratio of the company is 0.7 which is good.

The interest coverage ratio of the company is 4.25 indicating good, the company can comfortably cover its interest expenses with earnings.

The gross profit margin of the company is 22.5% indicating decent profitability.

The net profit margin of the company is 7.4% suggesting the need for improvement.

The return on equity of the company is 15.58% which is fair but has shown improvement in recent years.

The inventory turnover ratio of the company is 3.22 indicating efficient inventory management.

The receivables turnover ratio of the companies is 4.77 indicating collecting receivables takes longer than average,  potentially impacting cash flow.

The PE ratio of the company is 13.68 indicating the stock is undervalued.

The PB ratio of the companies 2.2.

Over all the company shows liquidity moderate debt levels and decent profitability. But there is some improvement needed in net profit margin and receivable collection.

In December 2023 promoters, Re purchased shares from the open market up to 1.5% and presently holding 71.92% indicating strong control and influence on the company’s decisions.

FII holding in the company is 1.41% which has decreased slightly from 1.73% in June 2023. This indicates a decrease in interest in the company.

DII holding in the company is 7.4%, showing a slight decrease from 8.50% in June 2023.

The public holding in the company is 19.28%.