Shares of GMM Pfaudler Ltd. surged 9.8% intraday, the most since Sept. 6, following its second-quarter results.
The company reported a rise of 20.5% in consolidated revenue at Rs 780.05 crore compared to Rs 647.27 crore in the same quarter last year, according to an exchange filing.
GMM Pfaudler Q2 Highlights (YoY)
Net profit up 150% at Rs 96.9 crore
Ebitda up 47% at Rs 138.25 crore
Total traded quantity is 11.3 times the 30-day average.
Out of the four analysts tracking the company, all maintain a 'buy' rating.
The return potential of the stock is 23%.
"I would say that 14-15% (Ebitda margin) is sustainable, but to reach 17% we need to start showing improvement," Tarak Patel, managing director of GMM Pfaudler, told BQ Prime in an interview. "I think India business needs to play a much more of an important part in terms of the growth of margins."
"And I think India will start showing that, both in terms of the material prices going down and the product mix changing," Tarak Patel said.
"The company is aiming to achieve Ebitda margins of 17% by 2025," he said.
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