Buy NCL Industries; target of Rs 185: Anand Rathi

Anand Rathi's research report on NCL Industries

Its subdued operating performance and higher fixed costs on account of new capacities pushed down NCL’s Q2FY19EBITDA and PAT respectively 14% and 21% y/y. The expected drop in interest cost (on replacing high-cost NCDs), recovering Board margins, anticipated operational savings and robust demand would, we expect, help revive NCL’s performance. We retain our Buy rating, with a lowerTP of `185.

Outlook

We retain our Buy rating, at a target `185 on 6.5x FY20e EV/EBITDA.