Hold IFGL Refractories; target of Rs 310: Centrum

Centrum is bullish on IFGL Refractories has recommended hold rating on the stock with a target price of Rs 310 in its research report dated December 12, 2017.

January 08, 2018 / 13:45 IST

26 Aug, 2025 12:21

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Centrum's research report on IFGL Refractories

We maintain our Hold rating on IFGL Refractories as we see limited scope for further re-rating after stock’s large outperformance to MNC peers in line with our view in last one year. Q2 performance was a mixed bag with domestic operations delivering strong results largely negated by weak results across all overseas subs. We continue to like IFGL’s operationally sound high-quality global assets and expect strong earnings growth driven by i) increased share of higher-margin subs and ii) recovery in steel production in key markets of US/Europe/India (aided by regulatory support & demand revival).

Outlook

We retain Hold with a revised TP of Rs310 based on 14x FY19E P/E applied to EPS adjusted for goodwill write-off. We have ascribed 30% discount to IFGL compared to its MNC peer and industry leader Vesuvius. Key upside risk is higher volumes while downside risk is higher raw material costs.For all recommendations report, click here

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