Kotak Securities recommended accumulate rating on Bodal Chemicals with a target price of Rs 130 in its research report dated October 26, 2018.
Kotak Securities' research report on Bodal Chemicals
Bodal Chemicals Q2FY19 numbers were in line with estimates. EBITDA margin during the quarter strengthened further by 40bps QoQ, supported by a change in product mix and a higher realisation. Going ahead, we foresee contribution from new dyestuff capacity to support revenue growth.
The stock at current valuations of 10.8x/9.0x FY19E/FY20E earnings, factors in all the potential negatives. But re-rating will take some more time. Recommend ACCUMULATE (earlier Reduce) with an unchanged target price Rs130.
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