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Last Updated : Jul 01, 2020 11:10 AM IST | Source: Moneycontrol.com

Buy Galaxy Surfactants; target of Rs 1900: HDFC Securities

HDFC Securities is bullish on Galaxy Surfactants has recommended buy rating on the stock with a target price of Rs 1900 in its research report dated June 30, 2020.

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HDFC Securities' research report on Galaxy Surfactants


Our BUY recommendation on GALSURF with a TP of INR 1,900 is premised on ((1) 55% revenues come from MNCs, which ensures stickiness of business, (2) EBITDA margins are stable at >12% since fluctuations in RMC are easily passed through to customers, and (3) Strong return ratios (RoE/RoIC of 26.3/24.1% in FY22).


Outlook


Our TP is INR 1,900 based on Sep-21E cash flows (WACC 10%, Terminal growth rate 3.0%). The stock is trading at 15.8x FY22 EPS.





For all recommendations report, click here

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First Published on Jul 1, 2020 11:10 am
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