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Hold Graphite India; target of Rs 1165: Centrum

Centrum recommended hold rating on Graphite India with a target price of Rs 1165 in its research report dated August 06, 2018.

September 18, 2018 / 13:37 IST
     
     
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    Centrum's research report on Graphite India

    We continue to remain positive on prospects of Graphite India (GIL) led by our view of electrode industry remaining in an upcycle for next few years as postulated in our recent sector report. We continue to expect extremely strong earningstrajectory for GIL in next few years with peak earnings in FY19E and moderation kicking in from FY20E/21E. GIL remains the best bet to play the electrode upcycle with healthy balance sheet, strong adj. FCF generation, high dividend payout andstrong management pedigree.

    Outlook

    GIL reported another record earnings performance in Q1 which was well above expectations. We continue to value the stock on our conservative 5 year cash flow methodology to arrive at a revised fair value of Rs1165. Maintain Hold.

    For all recommendations report, click here

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    Broker Research
    first published: Aug 14, 2018 03:50 pm

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