Hold Graphite India; target of Rs 105: ICICI Direct

ICICI Direct's research report on Graphite India

Graphite India reported a dismal set of Q4FY17 numbers wherein the topline was in line with our estimates but EBITDA and EBITDA margin were lower than our estimates. PAT was largely supported by other income and tax credit.

Outlook

On account of oligopoly nature of the graphite electrode market globally, we have valued the company at 9.0x FY19E EV/EBITDA thereby arriving at a target price of Rs 105, with a HOLD recommendation on the stock.