Moneycontrol Be a Pro
Get App
Last Updated : Dec 22, 2014 01:53 PM IST | Source: Moneycontrol.com

Gandhi Special on strong footing of recovery: ICICIdirect

ICICIdirect.com believes that, Gandhi Special Tubes (GST) is on a strong footing of recovery with increasing sales & profitability, going forward.

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

ICICIdirect.com's report on Gandhi Special Tubes


"Gandhi Special Tubes (GST), is a manufacturer of small diameter (outer diameter 3-75 mm) seamless and welded steel tubes, which find application in automotive, hydraulics, refrigeration (condenser tubes) and other engineering services. In the automotive space, the company manufactures seamless steel tubes that are used as fuel injection tubes in the commercial vehicles (diesel) category. In the hydraulics space, the company manufactures seamless steel tubes, which are used in material handling equipment mainly used in mining & construction activity. GST’s topline growth has been subdued (3.2% CAGR in FY10-14) in the past on the back of a slowdown in the commercial vehicle (CV) and mining & construction space. GST clocked a topline of Rs 83.5 crore in FY14 with corresponding EBITDA at Rs 26.1 crore (EBITDA margins at 31.3%) and PAT at Rs 17.3 crore. The company’s presence in a niche segment coupled with low competitive intensity has aided superior EBITDA margins (30-40%) in the past. With the CV cycle on the cusp of a cyclical recovery and the expected revival in construction/mining activity, we believe GST is on a strong footing of recovery with increasing sales & profitability, going forward", says ICICIdirect.com research report.


For all recommendations, click here

Close

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.



Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.
First Published on Dec 22, 2014 01:53 pm
Loading...
Sections
Follow us on
Available On