Buy Galaxy Surfactants; target of Rs 3865: Motilal Oswal

Motilal Oswal is bullish on Galaxy Surfactants recommended buy rating on the stock with a target price of Rs 3865 in its research report dated November 19, 2024.

Broker Research

November 20, 2024 / 12:36 IST

Buy

26 Aug, 2025 12:21

Volume

Todays L/H

Motilal Oswal's research report on Galaxy Surfactants

India’s personal care market is at an inflection point, with rising disposable income and premiumization trends driven by new applications such as dish and washing liquids. Galaxy Surfactants (GALSURF) is positioned to benefit as rural awareness, robust distribution, and local players prompt a shift from mass to premium segments. GALSURF anticipates robust growth in FY25 across the RoW, AMET, and Indian markets, driven by demand recovery, inflation easing, and profitability focus barring ongoing macroeconomic risks, thereby aiming for PAT growth > EBITDA growth > volume growth and a 22% RoCE.

Outlook

We estimate a volume CAGR of 9% over FY24-27, led by robust volumes in the domestic market and a recovery in the volumes of specialty care products in developed markets, which have already started growing. The stock is currently trading at ~22x FY26E EPS of INR118.3 and ~14x FY26E EV/EBITDA. We value the company at 30x Sep’26E EPS to arrive at a TP of INR3,865. We reiterate our BUY rating on the stock.

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