Company Overview

Arabian Petroleum Limited was originally incorporated as "Arabian Petroleum Private Limited" on March 20, 2009, by the Registrar of Companies, Mumbai. The company subsequently converted into a Public Company on November 11, 2011, and the name was changed to "Arabian Petroleum Limited" with a fresh Certificate of Incorporation on December 16, 2011.

The Company operates in the manufacturing business of a wide range of lubricants including specialty oils, coolants, and other products used for application in automobiles and industrial machines and appliances. The business is categorized into two distinctive product divisions: Automotive Lubricants - Arzol and Industrial Lubricants - SPL.

Market Position and Trading Information

Arabian Petroleum is listed and trades on the India National Stock Exchange (NSE) under the stock symbol ARAB. As of the latest trading data, the company has a market capitalization of ₹80.60 Cr. The company raised funds aggregating to Rs. 20.2 Crore through an Initial Public Offer of issuing up to 28,92,000 equity shares of face value of Rs. 10/- each in September 2023.

The stock has shown significant volatility over the past year. The 52-week high of Arabian Petroleum Ltd share price is Rs. 115.00 while the 52-week low is Rs. 63.00. Over the past 6 months, the Arabian Petroleum share price has decreased by 17.44% and in the last one year, it has decreased by 14.97%.

Key Financial Metrics

Based on the latest available financial data:

- Operating Revenue (TTM): Rs. 761.86 Cr

- Earnings Per Share (TTM): 7.85

- Price-to-Earnings (PE) ratio: 11.84 (as of May 23, 2025)

- Price-to-Book (PB) ratio: 1.64

- Annual Revenue Growth: 8%

- Return on Equity (ROE): 13%

- Debt to Equity ratio: 3%

- TTM Profit After Tax: ₹7 Cr

Business Operations and Manufacturing Facility

Arabian Petroleum Limited serves a comprehensive range of clients across various sectors. The company's manufacturing facility is located at Plot 14-B Morivali MIDC, Ambernath (W) Ambernath, Thane, Maharashtra-421505, providing strategic access to key industrial markets in western India.

Product Portfolio and Market Strategy

The company operates in the manufacturing business of a wide range of lubricants including specialty oils, coolants, and other products used for application in automobiles and industrial machines and appliances. The business is categorized into two distinctive product divisions: Automotive Lubricants - Arzol and Industrial Lubricants - SPL.

Customer Base and Sectoral Reach

Arabian Petroleum Limited serves a comprehensive range of clients across various sectors. The company's clientele includes prominent names in the private sector such as Varroc Engineering Limited, Mahindra First Choice Services Limited, Greaves Cotton Limited, Gabriel India Limited, Ki Mobility Solutions Private Limited - TVS Group Company, HELLA India Lighting Ltd, Petrelplus Inc, Nand Persaud & Co Ltd, J K Files (India) Limited - a Raymond Group Company, and Godrej & Boyce Manufacturing Co. Ltd.

The company also maintains significant government clientele including BEML Limited, Bharat Coking Coal Limited, Bharat Electronics Limited, Bharat Heavy Electricals Limited, Hindustan Aeronautics Limited, Indian Air Force, Mazagon Dock Shipbuilders Limited, Indian Navy (Controller of Procurement Material Organisation), Municipal Corporation of Greater Mumbai, Indian Railway, Western Coalfields Limited, SouthEastern Coalfields Limited, and Northern Coalfields Limited.

Arabian Petroleum serves various industries, including pharmaceutical, FMCG, chemicals, steel, rubber and tire, power, civil engineering, electrical appliances, textile, telecommunication, chemical, cables and conductors, and automobile sectors.

Global Reach and Export Operations

Arabian Petroleum has established a global presence by exporting its products to countries including Guyana, Oman, Qatar, Vietnam, Sri Lanka, Sierra Leone, Zambia, Bangladesh, Chile, Jordan, Seychelles, Maldives, Fiji, Congo, Guatemala, Suriname, Peru, Mauritius, and Dubai.

Corporate Governance and Shareholding

Promoter holding in Arabian Petroleum Ltd stands at 73.45 per cent as of September 2024, maintaining the same level from September 2023. There is no promoter pledging in Arabian Petroleum Ltd, which indicates a healthy governance structure.

Technical Analysis and Investment Perspective

From a technical standpoint, the stock is trading below its 200-day moving average and around 8% up from its 50-day moving average. The stock needs to take out the 200DMA levels and stay above it to make any further meaningful move. From an O'Neil Methodology perspective, the stock has an EPS Rank of 51 which indicates inconsistency in earnings, and a RS Rating of 39 which shows underperformance compared to other stocks.

Arabian Petroleum Limited represents a specialized player in India's lubricants industry with a diversified product portfolio, strong customer relationships across government and private sectors, and an expanding international footprint. While the stock has faced recent challenges with declining prices over the past year, the company maintains steady operational fundamentals with consistent profitability and a healthy balance sheet structure.