Nalanda Securities is bullish on Sanghi Industries has recommended buy rating on the stock with a target price of Rs 86 in its research report dated November 19, 2018.
Nalanda Securities' research report on Sanghi Industries
The company posted a revenue of INR 244cr for the quarter, up by 18.7% as a sharp increase in volumes offset a dip in realization (-8.4% YoY to INR 3938/ton). Total sales volume for the quarter stood at 0.62mt up by ~30% YoY (from 0.48mt), driven by the demand growth in its key markets which stood at 10-13%. There a marginal loss in volume due to the reduced availability of coastal shipping to Mumbai in the monsoon season.
However, the continued short-term issues prompts us to reduce our target price to INR 86 giving an upside of 37%. (i.e. valuing the stock at FY20E EV/Ton of $80/Ton, 9x FY20E EV/EBITDA)
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