Tap here to access menu...

Tap here to Pull quick market snapshot...

Tap here to open an account...

Welcome to our brand new BETA version...

More good things on their way...

Market Snapshot
  • BSE Sensex: 81463.09 -0.88%
  • BSE 500: 36129.89 -1.19%
  • BSE 200: 11282.11 -1.07%
  • BSE 100: 26031.97 -0.97%
  • BSE MidCap: 45978.04 -1.46%
  • BSE SmallCap: 53906.46 -1.88%
  • BSE BANKEX: 63043.13 -0.78%
  • BSE IT: 35100.9 -1.65%
  • Nifty 50: 24837 -0.90%
  • Nifty 500: 23014.8 -1.23%
  • Nifty 200: 13866.75 -1.11%
  • Nifty 100: 25442.1 -1.01%
  • Nifty Midcap 100: 58009.45 -1.61%
  • Nifty Small 100: 18294.45 -2.10%
  • Nifty IT: 35623.75 -1.42%
  • Nifty PSU Bank: 7003.65 -1.70%
News:
  • Kotak Mahindra Bank Q1 PAT sli...
  • Petronet LNG records over 25% ...
  • Reliance Infra reports turnaro...
  • Paras Defence posts PAT of Rs ...
  • Chennai Petro posts net loss o...
  • Euro to INR: 101.61 0.16%
  • Pound to INR: 116.99 -0.02%
  • Yen to INR: 0.59 0.03%
  • Dollar to INR: 86.38 0.01%

Advantage AxisDirect

Pick Of the Week – GMM Pfaudler Ltd



We hereby present you our investment idea for Equity Investment i.e “Pick of the Week”. A thorough analysis of company, industry and economy goes behind our stock ideas for you. With the “Pick of the Week”, you may earn superior returns in stock market over a time horizon of 6 – 9 months.



INVESTING RATIONALE


• Increasing capacity in Glass Line Equipment (GLE) business: GMM Pfaudler is the market leader in manufacturing of glass line equipments (>50% market share). In Q3FY18, GLE business grew by 7.2% Y-o-Y and constituted 61% of GMM’s revenues. Investments in the Agrochemical and Specialty chemicals sectors have been the main drivers for growth with the companies in this space putting up capacities. The current capacity utilization is 80%. It on its course to expand its capacity to 2000 vessels p.a which would require no major cap-ex. We expect this segment to grow at 12% CAGR over FY17-FY20E.

• Increasing revenue contribution from Non Glass Line Equipment (Non-GLE) business: In 9MFY18, GMM showed an exceptional growth in the Non-GLE segment with Heavy Engineering and Proprietary Products (Mixing systems, engineered systems, filtration & drying) growing by 20% and 36% respectively on a Y-o-Y basis due to high order execution and robust inflow of the orders. The Non-GLE business contributed 33% of the total revenues in 9MFY18 vs 28% in 9MFY17. The company has a healthy order backlog in this segment and we expect it to grow at 22% CAGR over FY17-FY19E.

• Focus on exports in both GLE and Non GLE: Exports contributed ~14% of GMM’s revenues in Q3FY18 which was merely <5% in H1FY18. This can be attributed to increased interaction between Pfaudler and GMM.

• We maintain a BUY with a target of Rs.812.



WE RECOMMEND


  • CMP

    Rs.725

  • Target Price

    Rs.812

  • Potential Upside

    12%


* Note: Stock Investment horizon Approx. 6-9 months. CMP as on 20th April, 2018.

Insights

Main Office Address

Unit No. 2, Phoenix Market City,15, LBS Road, Near Kamani Junction, Kurla (West), Mumbai- 400 070.

Email Address

In case of any queries please write to: helpdesk@axisdirect.in

v2.0.42-S41