Galaxy Surfactants - FY25E Volumes To Moderate, Margins To Improve: ICICI 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..ICICI Securities Report.In the last three years, Galaxy Surfactants Ltd. has grappled with a variety of challenges, yet delivered consistent earnings thanks to its robust business model and diversified portfolio. After a strong FY24E (+9.2%), we envisage Galaxy’s volumes slowing as India growth moderates while Africa, Middle East and Turkey improves. However, the company may revise its Ebitda/kg guidance upwards by at least Rs 1 in FY25E, as developed markets resume gaining traction. Galaxy Surfactants will likely achieve its growth guidance with net profit more than Ebitda more than volume – stressed upon greatly by the company. We cut our FY25E earnings per share by 3.8% on lower volumes estimates for India, and target price to Rs 2,440 (earlier: Rs 2,645), as we roll over our valuations to FY26E, and lower the multiple to 22 times (from 25 times). We upgrade our rating to Hold (from Reduce)..Risks Upside risks:Restocking driving higher-than-expected volumes from developed market. AMET volumes growing faster-than-expected. India volumes growth sustaining at higher levels similar to past three years compound annual growth rate. .Downside risks: Ebitda margin expansion lower-than-expected. India volume deceleration higher-than-expected.AMET market continues to remain challenging..Click on the attachment to read the full report:.HPCL - Strong Q4, Weaker Q1 Ahead, But Long-Term Prospects Remain Undiminished: ICICI 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 Surfactants - FY25E Volumes To Moderate, Margins To Improve: ICICI Securities

Africa, Middle East and Turker, Rest of the world revival to lift volumes; fatigue in India volumes

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