Galaxy Surfactants Ltd.

NSE: GALAXYSURF | BSE: 540935 | ISIN: INE600K01018 |Industry: Specialty Chemicals
|Expensive Performer
1600.00 20.95 (1.33%)
NSE Jul 08, 2020 12:58
Volume: 12,987

Galaxy Surfactants Ltd.    
30 Jun 2020
HDFC Securities
Our TP is INR 1,900 based on Sep-21E cash flows (WACC 10%, Terminal growth rate 3.0%). The stock is trading at 15.8x FY22 EPS. Our BUY recommendation on GALSURF with a TP of INR 1,900 is premised on ((1) 55% revenues come from MNCs, which ensures stickiness of business, (2) EBITDA margins are stable at >12% since fluctuations in RMC are easily passed through to customers, and (3) Strong return ratios (RoE/RoIC of 26.3/24.1% in FY22).
Galaxy Surfactants Ltd. has gained 37.17% in the last 3 Months
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