GMM Pfaudler Ltd. share price target

For Q4FY2018, GMM Pfaudler (GMM) posted a growth of 11%/14% yoy growth in revenue/ PAT amid ~300 bps margin expansion. The company is seeing good traction from its user industries like agrochemicals, which would drive 15-20% revenue growth in next two years. Outlook and Valuation: We have fine tuned our earnings estimates in view of FY201..

GMM Pfaudler Limited (GMM) is the Indian market leader in glass-lined (GL) steel equipment used in corrosive chemical processes of agrochemicals, specialty chemical and pharma sector. The company is seeing strong order inflow from the user industries which is likely to provide 20%+ growth outlook for next couple of years. Outlook & Va..

GMM Pfaudler is well positioned in the industry owing to robust order backlog, high entry barriers and market leadership position in GLE business, strong brand name, and sticky clientele, growing Non-GLE business, parent and subsidiary support, strong balance sheet

GMM Pfaudler Ltd (GMM) in 2QFY18 posted revenues of Rs 76 Cr. (up 21% Y-o-Y, up 11% Q-o-Q) due to stellar growth in Non-Glass Line Equipments (Heavy Engineering) segment.

GMM Pfaudler Ltd (GMM) in 1QFY18 posted revenues of Rs 69 Cr. (up 21% Y-o-Y, down 13% Q-o-Q) due to stellar growth in Non-Glass Line Equipments (Heavy Engineering and Proprietary products) segment.

GMM Pfaudler Ltd (GMM) in 4QFY17 posted revenues of Rs 79.5 Cr. (up 34% Y-o-Y, up 21% Q-o-Q) due to consistent growth in both Glass Line Equipments (GLE) and Non-GLE (Heavy Engineering and Proprietary products) segments.

GMM Pfaudler is the market leader in manufacturing of glass line equipments (>50% market share), this constitutes ~63% (Rs. 184 Cr.) of its revenues on a consolidated basis. We initiate coverage with BUY rating with a target price of Rs.634 i.e. ~19% upside (implies 24x FY19E)