3039.15 6.75 (0.22%)
5,540 NSE+BSE Volume
BSEJun 23, 2021 11:13 AM
The 9 reports from 5 analysts offering long term price targets for Galaxy Surfactants Ltd. have an average target of 2551.20. The consensus estimate represents a downside of -16.06% from the last price of 3039.15.
|Summary||Date||Stock||Broker||Price at Reco.||Target||Price at reco|
Change since reco(%)
|2021-06-10||Galaxy Surfactants L.. +||HDFC Securities||3068.60||3540.00||3068.60 (-0.96%)||16.48||Buy|
HSIE Results Daily: Max Financial Petronet LNG, Prestige Estates, Galaxy Surfactants, Teamlease Services
Teamlease Services: Teamlease registered strong growth (+5.1% QoQ) for the second consecutive quarter, in line with our estimate. Growth in core staffing (+5.5% QoQ, 91% of revenue) was led by improved hiring activity in e-commerce, essential retail, BFSI and manufacturing verticals. Stressed verticals like hospitality, retail and travel are not showing signs of recovery though. The core associate headcount growth has been robust (+7.5% QoQ, crossed the pre-COVID level), led by NETAP (+17.5%). The recovery which started in 2HFY21 will be impacted in 1QFY22E by the second wave, but clients are showing resilience and ~80% of the associates being hired are for essential services. Margin came in lower than expected as higher discounts were given to clients, leading to lower realisation (-3.5%), offset by enhanced productivity (+5.4% QoQ). Cash generation has also improved due to lower withholding tax, tax refunds, and lower DSO days (YoY). Going ahead, we expect gradual margin expansion with recovery in growth (by 2HFY22E), improved productivity, better business mix (higher-margin specialised staffing) and low costs of hiring. We cut our EPS estimate by -5.5/-3.4% for FY22/23E to factor in the impact of the second wave of COVID. Our target price of INR 3,950 is based on 38x FY23E EPS (five-year average PE of ~35x). The stock is trading at a PE of 50/35x FY22/23E. Maintain BUY. Max Financial: MAXL delivered an APE growth of 36/57% YoY/QoQ (6% miss vs. estimates). VNB margin for the full year came in at 25.2% (+358bps YoY), led by higher share of NPAR business and better fixed...
|2021-04-13||Galaxy Surfactants L.. +||HDFC Securities||2634.35||3000.00||2634.35 (15.37%)||Target met||Buy|
The rising disposable income will lead to a shift in consumer preferences towards premier products. There will be a shift in consumption from commoditised products towards premier products across all industries. Imports meet a large part of the domestic demand for speciality and downstream chemicals, offering much headroom for growth in local production We hosted a Chemical Investor Forum-2021, and invited senior management of six listed chemical companies. Despite economic challenges that caused GDP growth rate to drop to negative and it is still lower than pre-COVID level, the long-term outlook is that it will be in the higher single digit. This bodes well for the Indian chemical industry and we expect it to grow at the rate of 1.5x GDP growth rate. The catalyst for this is rising income, China Plus One Policy of MNCs and government policy of Aatma Nirbhar Bharat.
|2021-03-02||Galaxy Surfactants L.. +||Monarch Networth Capital Limited||2380.20||2936.00||2380.20 (27.68%)||Target met||Buy|
Monarch Networth Capital Limited
Valuation & Risks. We assign a PE multiple of 30x (premium to other chemical companies as discussed above) on FY23E earnings of Rs 97.9 post which we arrive at a target of Rs.2,936, an upside of 26% from current levels. We believe Galaxy deserves a higher valuation multiple compared to other chemical companies due to its high return ratios and eye-popping cash flows. The company is also less exposed to the general risks faced by chemical companies, such as commodity price fluctuations and cyclicity. The stock can very well move towards FMCG valuations, if not reach them....
|2021-01-25||Galaxy Surfactants L.. +||HDFC Securities||2117.35||2600.00||2117.35 (43.54%)||Target met||Buy|
The rising disposable income will lead to a shift in consumer preferences towards premier products. There will be a shift in consumption from commoditised products towards premier products across all industries. Currently, imports meet a large part of the domestic demand for speciality and downstream chemicals, offering much headroom growth in local production. In addition to significant growth in domestic demand, the geopolitical shifts underway in the international markets offer India an opportunity to emerge as a global production and export powerhouse. The Indian chemical industry holds an integral position in the global market. It is the sixth-largest globally, and the third-largest in Asia with a market size of ~USD180bn. The Indian chemical industry is in a sweet spot with tremendous opportunity and favourable tailwinds. It should experience significant growth in the coming years, driven by rising household incomes, the existent consumption gap, favourable government policies, and a huge export opportunity.
|2020-08-13||Galaxy Surfactants L.. +||HDFC Securities||1886.45||2100.00||1886.45 (61.10%)||Target met||Buy|
DCF-based valuation:Price target of INR 2,100 is based on Mar-22E cash flows (WACC 10%, Terminal growth 3.0%). The stock is trading at 21.8x FY22E EPS. Our BUY recommendation on GALSURF with a price target of INR 2,100 is premised on (1) stickiness of business as 55% of the revenue mix comes from MNCs, (2) stable EBITDA margins at >12% since fluctuations in raw material costs (RMC) are easily passed on to customers, and (3) strong return ratios (RoE/RoIC of 22/18% in FY22E).
|2020-07-15||Galaxy Surfactants L.. +||Way2Wealth||1579.80||1800.00||1579.80 (92.38%)||Target met||Accumulate|
|2020-07-01||Galaxy Surfactants L.. +||Ashika Research||1557.35||1680.00||1557.35 (95.15%)||Target met||Buy|
leading manufacturers of Performance Surfactants (61%) and Specialty Care Products (39%) with over 200 product grades. These products are used in consumer-centric Home and Personal Care (HPC) products like hair care, oral care, skin care, cosmetics, soap, shampoo, lotion, detergent, cleaning products etc. Galaxy supplies to leading MNC's and...
|2020-06-30||Galaxy Surfactants L.. +||HDFC Securities||1479.75||1900.00||1479.75 (105.38%)||Target met||Buy|
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).
|2020-01-17||Galaxy Surfactants L.. +||HDFC Securities||1465.35||1872.00||1465.35 (107.40%)||Target met||Buy|
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:
|2019-11-14||Galaxy Surfactants L.. +||HDFC Securities||1544.50||1834.00||1544.50 (96.77%)||Target met||Buy|
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.
|2019-09-30||Galaxy Surfactants L.. +||HDFC Securities||1457.45||1834.00||1457.45 (108.53%)||Target met||Buy|
Currently, the stock is flat (vs. the Nifty FMCG Index that has delivered +16% since then) despite the 29.1/24.3% jump in EBITDA/PAT. Given the secular growth opportunity and its capability to generate 20%+ returns on reinvested profits, GSL's current PER of 19.0/16.6x FY21/22E looks contextually low Galaxy Surfactants (GSL) is a preferred global supplier of surfactants and other specialty chemicals to leading FMCG MNCs, and caters exclusively to their home and personal care (HPC) segment. Long and intimate relations with its customers drive GSLs steady volume growth, steady margins. It has a diversified portfolio of 200+ products selling across 80 countries to 1,700+ customers. Backed by an experienced management, GSL went public in Feb-18 at Rs 1,480/sh.
|2018-02-28||Galaxy Surfactants L.. +||Choice India||1639.00||1900.00||1639.00 (85.43%)||Buy|
The market for personal and home care products in India is expected to grow at 7.9% and 7.2% CAGR by 2024. Further, the aggregate market for personal and home care products in Africa and the Middle East is expected to grow at 4.4% CAGR by 2024. Galaxy with its presence in these mature and emerging markets is expected to benefit from increased demands. The company's product are the ingredients for the personal and home care products, whose demand are inelastic in nature i.e. end users demand is hardly impacted by the change in the product price. Thus the company's products will continue to be in demand and would have minimal...
|2018-02-15||Galaxy Surfactants L.. +||Geojit BNP Paribas||1648.10||1648.10 (84.40%)||IPO Note|
Galaxy Surfactants Ltd (GSL) is one of India's leading manufacturer of surfactant and other specialty ingredients which are used in manufacturing of final products like personal and home care. Over the years, GSL has significantly expanded and diversified its product profile, client base and geographical footprints emerging as a global supplier to major FMCG companies like Cavinkare, Colgate-Palmolive (India), Himalaya, Dabur, Jyothy lab etc. Company has demonstrated strong financial performance in the recent years. During FY15-17,...
|2018-01-29||Galaxy Surfactants L.. +||SMC online||IPO Note|
Incorporated in 1986, Galaxy Surfactants Limited is a manufacturer of surfactants and other specialty ingredients for the personal care and home care industries. The company manufactures are commonly used in consumer-centric personal care and home care products like skin care, oral care, hair care, cosmetics, toiletries and detergent products. Galaxy surfactants product portfolio includes over 200 product grades, which are marketed to over 1,700 customers in 70 countries. Galaxy surfactants products are classified in 2 categories, namely Performance Surfactants and Speciality Care Products. Its clients include Cavinkare Private Limited, Colgate-Palmolive (India) Limited, Dabur India Limited,...
|2018-01-29||Galaxy Surfactants L.. +||Ventura||IPO Note|
|2018-01-24||Galaxy Surfactants L.. +||HDFC Securities||IPO Note|
IPO Note - Galaxy Surfactants Limited Issue Open: Jan 29 - Jan 31, 2018 Price Band: Rs. 1470 - 1480 Issue Size: 6,331,674 Equity Shares (Entirely Offer for sale) Offer Size: Rs.930.76 cr - 937.09 cr
|2018-01-24||Galaxy Surfactants L.. +||ICICI Securities Limited||IPO Note|
ICICI Securities Limited
Galaxy Surfactants (GSL), incorporated in 1986, is one of India's leading manufacturers of surfactants and other speciality ingredients for the personal care and home care industries. The company's products have a profound place in a number of applications in the space of consumercentric personal care and home care product. This includes skin care, oral care, hair care, cosmetics, toiletries and detergent products. Over the years, Galaxy Surfactants has significantly expanded and diversified its product portfolio, client base and geographical footprint with customers including some of the leading multinational, regional and local players in...
|2018-01-24||Galaxy Surfactants L.. +||Angel Broking||IPO Note|
Galaxy Surfactants Limited (Galaxy) is one of Indias leading manufacturers of surfactants and other specialty ingredients for the personal care and home care industries. Its products find application in a host of consumer-centric personal care and home care products, including skin care, oral care, hair care, cosmetics and detergent prod..
|2018-01-22||Galaxy Surfactants L.. +||Choice India||IPO Note|