Reduce Graphite India; target of Rs 390: 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 is 98000 tonnes per annum. 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

Going forward, we expect GIL’s consolidated operating performance to remain subdued, primarily due to muted performance from European operations. Hence, we downgrade the stock from HOLD to REDUCE. We value GIL at Rs 390, 6x FY24E EV/EBITDA.

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