Buy IG Petrochemicals; target of Rs 646: Nalanda Securities

Nalanda Securities is bullish on IG Petrochemicals has recommended buy rating on the stock with a target price of Rs 646 in its research report dated November 21, 2018.

November 23, 2018 / 03:05 PM IST
 
 
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Nalanda Securities' research report on IG Petrochemicals


The company’s topline grew by an impressive 34.6% y-o-y to INR 324.2 crore in Q2FY19 was largely in-line owing to increase in PAN prices. During Q2FY19, production of PAN volume has witnessed 10% decline on a q-o-q basis to 36,000 tonnes. The decline in production volume was due to shutdown in one unit for 23 days to change catalyst. Current prices of PAN are hovering around INR 80-82 per kg.


Outlook


At the CMP of INR 417, the stock trades at 3x FY20E EBITDA. We value using average of DCF & EV/EBITDA, thereby, maintaining our target price of INR 646 representing a potential upside of 55.0% from current valuations.

Broker Research
first published: Nov 23, 2018 03:05 pm

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