2 GRINDWELL share price target reports by brokerages below. See what is analyst's view on GRINDWELL 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.
Growth in C&P segment to drive growth particularly in performance plastics segment, which has application across multiple industries having huge market potential given the product range. However, weak auto, construction and industrial demand slowdown weigh on growth. We expect earnings growth of 13.5% CAGR during FY19-22E to Rs. 22.3 by FY22E and continue to maintain ‘HOLD’ rating on Grindwell by valuing it at 28.9x (8% discount to 5 year fwd earnings average of 31.5x) for a target of Rs. 645. Key downside risk to our call is slowdown in the user industries and large scale down trading in the abrasives segment could trigger further earnings downgrade.
Going forward, we expect growth in plastics segment to remain muted dueto automotive slowdown. On the whole, abrasives, ceramics and ‘newinitiatives’ are expected to grow at a CAGR of 9.5%, 16.5% and 16.5% over FY19-21E, due to traction from end user industries like construction, life sciences, oil & gas, etc. With a cash balance of Rs 234.1 crore and debt-free status, we believe GNL is a quality play. We value GNL at 33x FY21E earnings to arrive at a target price of Rs 635. We have a BUY rating on the stock.
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
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