Galaxy Surfactants Shares Can Rally 34% Says Motilal Oswal, Maintaining 'Buy' — Here's Why

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.

Motilal Oswal Report

We believe that going forward, volume growth will be driven by the Galaxy Surfactants Ltd.’s steady focus on research and development (with an annual expenditure of Rs 400-500 million), increased wallet share from its existing customers, and acquisition of new customers. Margin is also likely to expand gradually with an increase in the volume of premium specialty products.

We estimate a volume CAGR of 6% over FY25-27, driven by improving volumes in the Specialty Care segment across developed markets and a recovery in demand, albeit gradual, from rural and urban markets in India.

The stock is currently trading at ~22x FY27E earnings per share of Rs 106 and ~14x FY27E EV/Ebitda.

We value the company at 30x FY27E EPS to arrive at a target price of Rs 3,180. We reiterate our Buy rating on the stock.

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.