Broker research reports for stocks which have been upgraded by brokers. Both recommendation upgrades,
as well as share price target upgrades are available for companies in Industry - Electrodes & Refractories.
Broker Research reports: latest Upgrades
for Industry - Electrodes & Refractories
ICICI Securities Ltd | Retail Equity Research HEG again reported a stellar performance in Q2FY19 marked by sustained healthy realisation, lower raw material cost. Capacity utilisation was at ~85%. Revenue from operation was at | 1793.8 crore (up 338% YoY, 13% QoQ), higher than our estimate of | 1589.3 crore The company reported a strong EBITDA of | 1368.8 crore, higher than our estimate of | 1017 crore. Resultant EBITDA margin was at 76.3% (vs. Q2FY18: 46.3%, Q1FY19:74.8% and our estimate of 64%)...
Our detailed interaction with Orient Refractories (ORL) & RHI Magnesita management on the side-lines of ORL AGM pointed towards i) increased focus of the group in transitioning to a bigger entity in India with substantial market share, ii) addition of production capability for meeting both domestic and export demand and iii) reduction in margins from a high base of FY18 at both ORL and RHI India led by RM cost inflation. Revenue growth is expected to remain solid but earnings growth would be lower due to normalisation of margins. Though we remain structurally positive on ORL led by best in class capital as well as operational costs,...
ICICI Securities Ltd | Retail Equity Research Growing EAF production points to healthy demand prospects Due to stringent environmental norms, China has shut ~155-160 million tonne (MT) of largely unaccounted induction furnace capacity along with ~115 MT steelmaking capacity in 2016-17. These capacity cuts have led to steel export reduction by ~40% from the region, thereby encouraging steel production via EAF route in other countries. Industry sources indicate globally ~55 MT of EAF steel production was added in 2017. On...
Riding the golden wave of GE, retain Hold We continue to remain positive on prospects of Graphite India (GIL) led by our view of electrode industry remaining in an upcycle for next few years as postulated in our recent sector report. We continue to expect extremely strong earnings trajectory for GIL in next few years with peak earnings in FY19E and moderation kicking in from FY20E/21E. GIL remains the best bet to play the electrode upcycle with healthy balance sheet, strong adj. FCF generation, high dividend payout and strong management pedigree. GIL reported another record earnings performance...
HEG reported a stellar performance wherein profitability was above our estimates. The company reported a capacity utilisation of 82% (vs. our estimate of 85%). Topline came in at | 1587 crore (up 673% YoY, 23% QoQ) in line with our estimate of | 1537.7 crore Raw material cost as a percentage of sales came in at 13% (vs. our estimate of 20.4%, Q4FY18: 11.3%). The resultant gross margin was at 87.0% (vs. our estimate of 79.6%, Q4FY18: 88.7%) EBITDA came in at a robust | 1188 crore vs. our estimate of | 1025.1...
decline in both steel and graphite electrode exports from China on 1467.8 3266.0 6685.3 6933.2 account of capacity closures. Going forward, on the back of sustained 39.6 1444.2 3428.9 3485.3 increase in graphite electrode prices, we believe there is more leg room...
ICICI Securities Ltd | Retail Equity Research HEG reported a stellar Q4FY18 performance, with higher-thanexpected realisations leading to a beat on all fronts. Topline for the quarter came in at | 1292.5 crore (up 401.4% YoY, 53.4% QoQ) notably higher than our estimate of | 1067.9 crore. Capacity utilisation during the quarter was at ~84% (our estimate: ~90%) The company reported a robust EBITDA of | 951 crore, significantly higher than our estimate of | 648.3 crore. The resultant EBITDA margin was at 73.6% (vs. our estimate of 60.7%, Q4FY17: 11.5%, Q3FY18:...
Golden times continue getting better, retain Hold We continue to remain positive on prospects of Graphite India (GIL) led by our view of electrode industry remaining in an upcycle for next few years as postulated in our recent sector report. We continue to expect extremely strong earnings trajectory for GIL in next few years with peak earnings in FY19E and moderation kicking in from FY20E. GIL remains the best bet to play the electrode upcycle with healthy balance sheet, strong adj. FCF generation, high dividend payout and strong management pedigree. Q4 results were well above expectations and...
Joint Plant Committee posits that steel production in India posted a growth of 5.3% (yoy)) in 9MFY18. The country recently ousted Japan with domestic production of 8.4 mn tons (3.4% rise)) in February as against Japan's 8.2 mn tons of production (0.5% de-growth), ), making India the second largest steel...
Both HEG and Graphite India, domestic graphite electrode stocks, have seen a sharp run up on the bourses in the last few months. A sustained positive outlook on the global graphite electrode segment coupled with healthy realisations of both global and domestic manufacturers has driven the strong rally. Key triggers have been: 1) consolidation of graphite electrode market globally, 2) ~20% of the global graphite electrode capacity (ex-China) shutting down in the last three years, 3) increase in steel production through EAF route (outside China) coupled with an...
