3 GRAPHITE share price target reports by brokerages below. See what is analyst's view on GRAPHITE share price forecast, rating, estimates, valuation and prediction behind the target. You may use these research report forecasts for long-term to medium term for your investment or trades in 2020.
Graphite India reported a muted performance in Q4FY20 on the back of weak demand from the steel sector. Going forward over the near term, the demand for graphite electrodes is expected to remain subdued due to partial closure of steel capacities globally, lower steel production and de-stocking of electrode inventory at customer end at a slower pace than anticipated, thereby adversely impacting demand prospects. We value the stock at 6x FY22E EPS and arrive at a target price of Rs 200. We downgrade the stock from BUY to HOLD.
After a subdued Q2FY20, the expected decline in needle coke prices in H2FY20 augurs well for the company as it is expected to lead to an uptick in both standalone as well as consolidated operating margins (from Q2FY20 levels). We model EBITDA margins of 26.5% in FY20E and 35.0% in FY21E. We value the stock at 6x FY21E EPS and arrive at a target price of Rs 330. We upgrade the stock from REDUCE to BUY.
While global graphite electrode prices have witnessed a softening trend; the uptick in prices of key raw material (viz. needle coke) is likely to impact thecompany’s margin profile. We downward revise capacity utilisation level to 82.0% for FY20E (from 85% earlier) and introduce FY21E capacity utilisation at 82.0%. We value the stock at 6x FY21E EPS and arrive at a target price of Rs 400. We have a HOLD recommendation on the stock.
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
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