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Last Updated : Sep 30, 2020 03:59 PM IST | Source: Moneycontrol.com

Reduce Garware Technical Fibres; target of Rs 1776: CD Equisearch

CD Equisearch recommended reduce rating on Garware Technical Fibres with a target price of Rs 1776 in its research report dated September 30, 2020.

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CD Equisearch's research report on Garware Technical Fibres


The global technical textile market is expected to reach $274.1 billion by 2027, growing at a CAGR of 5.1% from 2020 according to a study published by Allied Market Research in September; the market garnered $201.2 billion in 2019. Rise in demand for geotextile from developing nations and preferences for non-woven technical fabrics would propel the growth of the global technical textile market, however, toxic waste production in high quantities hinders the market growth. On the other hand, innovative methods for recycling of textiles create new opportunities in the coming years.



Outlook


On balance, we recommend ‘reduce’ rating on the stock with target price of Rs 1776 (previous target Rs 1404) based on 24x FY22e EPS of Rs 74.01. The current valuation leaves little scope of appreciation for it implies a terminal growth rate of 7.75% on free cash flows beyond FY22.


For all recommendations report, click here

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

First Published on Sep 30, 2020 03:59 pm
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