Hold Graphite India; target of Rs 475: ICICI Direct

ICICI Direct's research report on Graphite India

Graphite India (GIL) is the largest Indian producer of graphite electrodes by total capacity. Its manufacturing capacity of 98000 tonnes per annum is spread over three plants at Durgapur & Nashik in India & Nuremberg in Germany. While GIL manufactures a full range of graphite electrodes, it stays focused on the higher margin, large diameter, ultra-high power (UHP) electrodes • GIL has over 40 years of technical expertise in the industry.

Outlook

We downgrade the stock from BUY to HOLD. We value GIL at Rs 475, 6x FY24E EV/EBITDA.

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