Buy Alicon Castalloy; target of Rs 999: Sharekhan

Sharekhan's research report on Alicon Castalloy

The current order book position stands at Rs. 8,500 crore, and management has increased the revenue target to Rs. 2,200 crores for FY2026. Management is strategically focusing on improvement in the product mix via rising revenue from the PV /CV space and targeting a 14% EBITDA margin by FY2026. The stock trades at a P/E multiple of 12.4x and EV/EBITDA multiple of 6.4x its FY2025E.

Outlook

We maintain our Buy rating on Alicon Castalloy Limited (ACL) with a target price of Rs. 999 on robust order book, an expectation of improvement in operating margin led by better product mix and its focus on EV projects.