Buy Graphite India, target price Rs 444: ICICI Direct

ICICI Direct has buy call on Graphite India with a target price of Rs 444. The current market price of Graphite India Ltd. is Rs 397.5. Time period given by analyst is 14 days when Graphite India price can reach defined target. ICICI Direct recommended to keep stop loss at Rs 374.

Graphite India, incorporated in the year 1974, is a Mid Cap company (having a market cap of Rs 7767.16 Crore) operating in Industrial Consumables sector.

Graphite India key Products/Revenue Segments include Graphite Electrodes Anodes & Miscl., Graphite Equipments, Calcined Petroleum Coke, High Speed Steel, Electricity, Others, Export Incentives, Carbon Paste, Alloy Steel, GRP Pipes, Tanks & Soils, Royalty Income, Sale of services for the year ending 31-Mar-2022.

Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 936.00 Crore, up 4.35 % from last quarter Total Income of Rs 897.00 Crore and up 21.40 % from last year same quarter Total Income of Rs 771.00 Crore. Company has reported net profit after tax of Rs 92.00 Crore in latest quarter.

The company’s top management includes Mr.K K Bangur, Mr.Ashutosh Dixit, Mr.P K Khaitan, Mr.N S Damani, Mr.N Venkataramani, Mr.Gaurav Swarup, Mrs.Sudha Krishnan, Mr.A V Lodha. Company has S R Batliboi & Co. LLP as its auditors. As on 30-09-2022, the company has a total of 20 Crore shares outstanding.

Investment Rationale
Graphite's share price has held its June lows on multiple occasions and resolved out of short term rounding bottom formation. In the last week, stock resolved above its hurdle of Rs 390 and witnessed follow through buying in Monday's session along with volumes expanding in both sessions. The brokerage expects share price to head towards Rs 450 in the short term which was its August swing high.

Promoter/FII Holdings
Promoters held 65.34 per cent stake in the company as of 30-Sep-2022, while FIIs owned 5.32 per cent, DIIs 8.69 per cent.