Get App
Last Updated : Feb 17, 2017 02:42 PM IST | Source:

Hold Graphite India; target of Rs 100: ICICI Direct

ICICI Direct recommended hold rating on Graphite India with a target price of Rs 100 in its research report dated February 16, 2017.

  • bselive
  • nselive
Todays L/H

ICICI Direct's research report on Graphite India

After subdued capacity utilisation over the last few quarters, Graphite India reported healthy utilisation level for Q3FY17 (85% in Q3FY17 compared to capacity utilisation of 75% in Q2FY17, 56% in Q3FY16). Demand for graphite electrodes has started picking up after the inventory correction at the customers’ end, auguring well for the company.


Hence, we have upward revised the consolidated capacity utilisation level to 72% for FY17E (from 70% earlier), maintained consolidated capacity utilisation of 75% for FY18E and introduced capacity utilisation of 78% for FY19E. We value the company at 7.0x FY19E EV/EBITDA thereby arriving at a target price of Rs 100, with a HOLD recommendation on the stock.

For all recommendations, click here

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

Exclusive offer: Use code "BUDGET2020" and get Moneycontrol Pro's Subscription for as little as Rs 333/- for the first year.

First Published on Feb 17, 2017 02:42 pm
Follow us on