Sharekhan's research report on Alicon Castalloy
Backed by its diversified business portfolio, the company aims to outperform the domestic automobile industry growth. Despite macro headwinds, the management has shared optimistic outlook for export revenue for FY24E backed by order inflow visibility. The management is looking for a gradual improvement in EBITDA margin and targets EBITDA margin at 14-15% level in next 3-4 years, as new orders is expected to deliver better EBITDA margin.
Outlook
We maintain our Buy rating on Alicon Castalloy Limited (Alicon) with an unchanged PT of Rs. 1,159, led by strong order book and margin expansion plans. The stock trades at a P/E multiple of 10.1x and EV/ EBITDA multiple of 4.5x its FY25 E estimates.
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.
