Anand Rathi is bullish on Grindwell Norton has recommended buy rating on the stock with a target price of Rs 786 in its research report dated November 13, 2018.
Anand Rathi's research report on Grindwell Norton
New performance plastic products added by Grindwell Norton for pharma, life sciences, auto and Defence are expected to do well in the next five years. Its high-performance refractories business is also expected to grow robustly due to strong demand in aluminium and secondary steel production. Abrasives will continue with a 12-15% CAGR in sales in the next two years. We expect margins to improve due to operating leverage and a favourable sales mix. We expect earnings to clock a 20% CAGR in the next two years.
Outlook
Hence, we maintain our Buy rating, with a TP of `786 (40x FY20e earnings).
For all recommendations report, click here
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