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.