JM Financial has initiated coverage on Tilaknagar Industries Ltd. with a 'buy' rating and a target price of Rs 550. The shares of Tilaknagar Industries Ltd. grew almost 2% on Tuesday.
In its latest brokerage note, JM Financial cites improving growth visibility and margin expansion prospects following the recent acquisition of Imperial Blue. The brokerage said that the acquisition is a strategic step that strengthens Tilaknagar's presence in the prestige and above segment while providing scale benefits over the medium term.
JM Financial expects the legacy business to deliver steady growth, with volumes projected to grow at an approximate 11% CAGR over FY26–28 (estimates) supported by brand traction and stable demand across key markets. On a combined basis, including Imperial Blue, the brokerage estimates like-to-like volume growth of 8% in FY27E and 9% approximately in FY28E.
EBITDA margins are expected to remain healthy at 12.5–12.8% in FY26E, with scope for approximately 150 bps expansion over FY26–28E. Margin improvement is likely to be driven by synergy benefits, better sourcing efficiencies, and operating leverage as volumes scale up.
JM Financial also noted Tilaknagar's limited capex requirements, which should translate into strong free cash flow generation, enabling balance sheet strengthening and potential value accretion over the medium term.
Tilaknagar Industries Ltd. Share Price Today
Tilaknagar Industries Ltd. Share Price Today.
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The scrip rose as much as 1.94% to Rs 451 apiece intraday. This compares to a 0.08% decline in the NSE Nifty 50 Index. It has risen 92.53% in the last 12 months but has fallen 1.36% year-to-date. Total traded volume so far in the day stood at 0.54 times its 30-day average. The relative strength index was at 46.96.
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