Anand Rathi 's research report on Sanghi Industries
The demand slump in Sanghi’s operating region and lockdown in Mar’20 pulled Q4 volumes down 24% y/y. On higher realisations, savings in logistics and advertising costs, however, and a low base, the operating performance was good with 12% y/y EBITDA growth. The ongoing Kutch expansion was further delayed by the lockdown. Demand revival and labour will be key things to watch.
We retain our Buy, with a higher TP of `37 (earlier `30), 9x FY22e EV/EBITDA.
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