Galaxy Surfactants Ltd.

NSE: GALAXYSURF | BSE: 540935 | ISIN: INE600K01018 | Industry: Specialty Chemicals
| Mid-range Performer
2106.4500 -51.05 (-2.37%)
NSE Mar 26, 2025 15:31 PM
Volume: 11,381
 

2106.45
-2.37%
HDFC Securities
We remain constructive on the company given its diversified portfolio, healthy volume growth (9-10% over FY20-22E) and quality of customers. Robustness of its business enables GSL to maintain stable margins (EBITDAM of ~12.5 expected over FY20-22E). Given the secular growth opportunity and its capability to generate 20%+ returns on reinvested profits, GSL's current PER of 19.8/17.3x FY21/22E is rather low. We value GSL at 22x Sep-21 EPS to arrive at a TP of Rs 1,834. Maintain BUY. Galaxy Surfactants (GSL) 2QFY20 performance was commendable with >10% YoY volume growth amidst slowdown in the global Home and Personal care (HPC) market. GSL maintained a cautious domestic demand outlook for 2HFY20 but a gradual shift in consumption pattern towards specialty care products will help maintain profitability in the long run. Other geographies, however, will continue to support volume growth in 2H.
Galaxy Surfactants Ltd. is trading below all available SMAs
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