Galaxy Surfactant - Growth, Quality; Maintain Buy With A Target Price Of Rs 3,465: HDFC Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..HDFC Securities Institutional Equities.Galaxy Surfactants Ltd.’s volume growth momentum has the potential to accelerate, accompanied by margin expansion. Global home and personal care leaders have increased the volume growth outlook for 2024 after strong volumes in Q1. Demand for premium specialty care products is expected to rebound as demand in Europe and North America rebounds with the easing of inflation and the end of inventory destocking. Demand in the domestic and RoW markets shall continue. We expect per unit Ebitda to improve from Rs 18.59/kg in FY24 to Rs 20.45/22.23/kg in FY25/FY26 owing to-a change in product mix towards better-margin products andoperating leverage. .Volume growth will be 9/9% while Ebitda margin will expand by 89/72 bps to 13.1/13.8% in FY25/26..Galaxy Surfactants’ balance sheet has turned net cash with Rs 1.1 billion of net cash at FY24 end. The company will generate operating cash flow and free cash flow of Rs 7.27 million and Rs 4.87 million, spread over FY25-26. We are expecting an earnings CAGR of 22% over FY24-26E. RoE will improve from 14.8% in FY24 to 17% in FY26. Currently, the stock is trading at 26.8/22.1 FY25/FY26. We believe it is contextually low. Maintain Buy on Galaxy Surfactants with a target price of Rs 3,465..Click on the attachment to read the full report:.JK Lakshmi Cement - Firing On All Cylinders: HDFC Securities.DISCLAIMERThis 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.

Galaxy Surfactant - Growth, Quality; Maintain Buy With A Target Price Of Rs 3,465: HDFC Securities

Volumes expected to grow at 9/9% in FY25/FY256

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Galaxy Surfactant - Growth, Quality; Maintain Buy With A Target Price Of Rs 3,465: HDFC Securities

Volumes expected to grow at 9/9% in FY25/FY256

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