Buy Grindwell Norton; target of Rs 500: ICICI Direct
ICICI Direct has recommended Buy rating on Grindwell Norton with a target price of Rs 500 in its research report dated July 27, 2017.
July 31, 2017 / 02:41 PM IST
ICICI Direct's research report on Grindwell Norton
Grindwell Norton’s (GNL) reported Q1FY18 results, which were below our estimates. This was mostly on account of weak growth of 2.6% YoY in the abrasives segment (our estimate 10% YoY). The abrasives segment contributed 64% of top line, while the Ceramics & Plastics segment contributed 28% to the topline.
Accordingly, we value GNL at 35 x FY19E earnings to arrive at a target price of Rs 500 and continue to retain BUY recommendation on the stock.
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