Anand Rathi is bullish on Sanghi Industries has recommended buy rating on the stock with a target price of Rs 37 in its research report dated June 27, 2020.
Anand Rathi 's research report on Sanghi Industries
The demand slump in Sanghi’s operating region and lockdown in Mar’20 pulled Q4 volumes down 24% y/y. On higher realisations, savings in logistics and advertising costs, however, and a low base, the operating performance was good with 12% y/y EBITDA growth. The ongoing Kutch expansion was further delayed by the lockdown. Demand revival and labour will be key things to watch.
Outlook
We retain our Buy, with a higher TP of `37 (earlier `30), 9x FY22e EV/EBITDA.
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