ICICI Direct's research report on Graphite India
Graphite India (GIL) reported an operationally healthy set of Q4FY21 numbers, especially for the standalone entity. For Q4FY21, standalone operations reported capacity utilisation of 85% compared to 78% in Q3FY21, 49% in Q4FY20. Standalone operations reported topline of Rs 563 crore, up 24% QoQ, 3% YoY. EBITDA of standalone operations was at Rs 128 crore, while adjusted standalone EBITDA (EBITDA excluding onetime income and expense) was at Rs 188 crore. Standalone PAT was at Rs 114 crore (up 356% YoY, 23% QoQ). For Q4FY21, consolidated operations reported capacity utilisation of 73% compared to 65% in Q3FY21 and 41% in Q4FY20. Consolidated operations reported topline of Rs 565 crore, up 13% QoQ, down 6% YoY. EBITDA of consolidated operations was at Rs 78 crore while adjusted consolidated EBITDA was at Rs 138 crore. Consolidated PAT for the quarter was at Rs 64 crore (up 178% YoY).
We value the stock at 6.5x FY23E EV/EBITDA and arrive at a target price of Rs 800 (earlier Rs 825). We maintain our BUY recommendation on the stock.
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