Buy Galaxy Surfactants; target of Rs 2570: Motilal Oswal

Motilal Oswal is bullish on Galaxy Surfactants has recommended buy rating on the stock with a target price of Rs 2570 in its research report dated November 13, 2025.

Broker Research

November 17, 2025 / 13:05 IST

Buy

26 Aug, 2025 12:21

Volume

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Motilal Oswal's research report on Galaxy Surfactants

Galaxy Surfactants (GALSURF) delivered a weak quarter, with EBITDA declining 13% YoY. EBITDA/kg stood at ~INR17, down 11% YoY in 2QFY26, primarily due to global tariff headwinds, reformulation within the performance segment, and lower domestic volumes following GST-driven inventory adjustments. The overall volumes remained flat YoY and QoQ, impacted by short-term disruptions in both the domestic and North American markets; however, this softness was partly offset by strong double-digit growth in Latin America and the Asia-Pacific region. Factoring in the weak 2Q performance and the challenging macro environment, we cut our FY26/FY27/FY28E earnings for GALSURF by 11%/11%/9%. We reiterate our BUY rating with a TP of INR2,570 (based on 27x FY27E EPS).

Outlook

Factoring in the weak 2Q performance and the challenging macro environment, we cut our FY26/FY27/FY28E earnings for GALSURF by 11%/11%/9%. We reiterate our BUY rating with a TP of INR2,570 (based on 27x FY27E EPS).

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