Galaxy Surfactants: Resilient business model affirms earnings visibility
The key thing to watch for Galaxy Surfactants is speciality portfolio’s growth prospects
November 24, 2020 / 09:25 AM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
Galaxy Surfactants (Market cap: Rs 6,892 crore, CMP: 1,944), the country’s leading oleochemical maker, had been a curious investment case. While on the one hand, this FMCG ingredient manufacturer boasts of stable demand prospects from the defensive industry, on the other, mushrooming of regional surfactant vendors does throw up the risk of competitive intensity.
However, as the saying goes, the resilience of a business is tested during crises and how well a company creates and defends its moat. Galaxy Surfactants...