ICICI Securities's research report on Galaxy Surfactants
Galaxy Surfactants’ (GSL) Q4FY24 EBITDA/kg stood at INR 16.9, down 27.2% YoY, was hurt from higher freight cost and lower volumes due to the Red Sea issue. GSL guides for volume growth of 6–8% in FY25 with an upside bias, as AMET and RoW may possibly contribute more, should the disturbances cease to escalate and/or dissipate. However, GSL has increased its EBITDA/kg guidance by INR 1 to INR 20.5–21.5/kg - we anticipated this and have penned it down in our detailed note (link). We were concerned about volumes moderating; however, GSL appears quite confident about sustaining it.
Outlook
We raise our FY25E/26E EPS by ~3% each, baking in higher other income. Our revised target price is now INR 2,520 (from INR 2,440), valuing GSL at a PE multiple of 22x FY26E EPS (unchanged). Maintain HOLD.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
