Buy Galaxy Surfactants; target of Rs 2100: HDFC Securities

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

live

• bselive
• nselive

Volume

Todays L/H

More

×

HDFC Securities' research report on Galaxy Surfactants

Our BUY recommendation on GALSURF with a price target of INR 2,100 is premised on (1) stickiness of business as 55% of the revenue mix comes from MNCs, (2) stable EBITDA margins at >12% since fluctuations in raw material costs (RMC) are easily passed on to customers, and (3) strong return ratios (RoE/RoIC of 22/18% in FY22E).

Outlook

Price target of INR 2,100 is based on Mar-22E cash flows (WACC 10%, Terminal growth 3.0%). The stock is trading at 21.8x FY22E EPS.

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.

Read More