Savita Oil Technologies Limited

Savita Oil Technologies Limited, established in 1961, is a specialty petroleum products company engaged in manufacturing Transformer Oils, White Oils etc. The company has a one-third market share in domestic transformer and white oil segments. It is amongst Top 2 Suppliers of White & Minerals Oils in India. The company has a distribution network of 41 stock points, 20,000 retailers, 1500 Franchisee dealers, and 400 Distributors. It exports to over 75+ countries across the world.  The company has 4 manufacturing facilities in Turbhe, Mahad in Maharashtra, and Kharadpada and Silli in Silvassa, with a capacity of 550,000 KL/MT per annum. It also generates renewable energy from wind at 18 sites in Maharashtra, Tamil Nadu, and Karnataka with a power capacity of 53.80 MW. Power is sold to SEBs and other users, under long-term agreements. In Q2 FY24, it commissioned a new Synthetic Ester Fluid plant in Mahad. Synthetic Ester is used as an EV Coolant, Immersion Cooling of batteries, and Data Center Cooling Fluids. Further in Q4 FY24, it relaunched its lubricant brand as “Savsol Easter5” to increase market share. The financials of the company is good, RoNW is 13.3% and at CMP its looks fully priced. Price difference is around 16% from CMP and acceptance ratio as per current share holding for retail will be around 1%, so final buyback ration may be within 10% and one may get around 1-2% on investment. So we give AVOID rating to this buyback, those who are currently holding may participate in buyback.

• 1 Mr. Rajesh Pirogiwal
• 2 Mrs. Sunita Pirogiwal
• 3 Miss Tanvi Pirogiwal