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.
Yes Securities Report
We initiate coverage on Galaxy Surfactants Ltd. with an Add rating and a target price of Rs 3,250.
A proxy to the FMCG industry Galaxy surfactants is well-positioned to capitalize on growing demand for personal care and home care products globally. Its relentless focus on expanding the high-margin specialty care product segment, currently fetching ~40% of revenues, is expected to drive an Ebitda CAGR of ~14.3% over the span FY24-27.
Fading geopolitical challenges and improving rural dynamics should bring stability and restocking in H2 FY25. As regards the raw material volatility, Galaxy has the ability to pass on the hike to consumers with a lag, thereby normalizing its margins annually.
Galaxy's capacity expansion of Rs 1.5 billion capex, with utilization projected to rise from 70% to ~85% over the next three years, ably supports 6-8% volume CAGR.
Galaxy has a well spread-out geographical presence across India, Africa, Middle East and Turkey, Rest of the world. Further, it is debt-free with free cash flow likely to touch Rs 3.5 billion by FY27.
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.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
