Galaxy Surfactants’ Strong Q3 Performance Upgrade Ebitda Guidance: ICICI Securities

BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Galaxy Surfactants Ltd.’s Q3 FY21 adjusted Ebitda/kilogram at Rs 18.1 raises confidence on sustainability of higher profitability, and management has increased its guidance under this parameter by 6-7% to Rs 16-18 (from Rs 15-17).

We take it that the guidance upgrade has come from strong performance in new-age products including mild surfactants, preservatives and proteins.

We expected these product-categories to sustain more than 20% revenue growth in the foreseeable future, and create more headroom for Ebitda/kg expansion.

Volume growth is likely to stay in the range of 8-11% per annum.

DISCLAIMER

This report is authored by an external party. BloombergQuint 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 BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.