Name: Latest research reports of Galaxy Surfactants Ltd. authored by HDFC Securities and published by - Trendlyne research reports.
Item: Galaxy Surfactants Ltd.
Rating: 5
Author: HDFC Securities

Galaxy Surfactants (Update): Strong and steady. Maintain BUY

Buy: Galaxy Surfactants Ltd.

Target

HDFC Securities

We reiterate our BUY rating on the stock with a TP of Rs 1,872 (22x Dec-21E) given, (1) Diversified portfolio that continues to attract and retain customers, (2) Presence in widespread geographies that diversifies business risk, (3) Stability of margins (standard deviation of EBITDA margins over FY10-19 at 2.0), and (4) Ability to generate ~20% RoCE. We visited the Taloja facility of Galaxy Surfactants (GSL) which was followed by an interaction with Mr. K. Natarajan, the Executive Director and COO as well Mr. Ganesh Kamath, the companys CFO. Following are the key takeaways from the event: