Grindwell Norton - Prepared For A Multi-Pronged Growth Cycle: Prabhudas Lilladher

Prabhudas Lilladher Report

We believe Grindwell Norton Ltd. will likely see long-term profitable growth on the back of its-

1. focus on technologically advanced niche/high-performance products in Performance Plastics,

2. penetration in newer high-growth markets,

3. focus on tapping new verticals in ceramics and refractories,

4. capacity expansion in coated abrasives, engineered ceramics and performance plastics, and

5. strong balance sheet, operating cash flows, and return ratios (23.4% return on capital employed).

We revise our EPS estimates by -3.8%/-3.0% factoring in the soft near-term demand in exports. The stock is trading at a price/earning of 63.1 times/51.5 times on FY25/26E earnings.

We roll forward to FY26E and maintain ‘Accumulate’ rating with a revised target price of Rs 2,749 (Rs 2,512 earlier), valuing the stock at a P/E of 55 times FY26E (51 times Dec-25E earlier) given the large investments made by the company to capitalise on a multitude of opportunities.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.