HomeNewsBusinessStocksBuy Tega Industries; target of Rs 2016: LKP Research

Buy Tega Industries; target of Rs 2016: LKP Research

LKP Research is bullish on Tega Industries has recommended buy rating on the stock with a target price of Rs 2016 in its research report dated September 12, 2025.

September 15, 2025 / 12:14 IST
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buy
buy

LKP Research's research report on Tega Industries

Tega Industries Limited (TEGA), in consortium with Apollo Funds (Apollo Management Singapore Pte. Ltd), has entered into a term sheet to acquire Molycop (AIP MC Holdings Ltd.) at an enterprise value of $1.48 bn (~Rs. 130 bn). Under the deal, TEGA will be acquiring a major stake of 77%, while Apollo will retain 23%. Based on FY25 numbers, combined revenue of TEGA & Molycop will stand at ~Rs.152 bn (~$1.7 bn) and combined EBITDA of Rs.18.5 bn (~$ 212 mn), valuing Molycop at 8.6x of EV/EBITDA.

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Outlook

We maintain a positive long-term view on the stock and will revisit our estimates once there is greater clarity on Molycop’s detailed financials and the integration roadmap.