ICICI Direct's research report on Graphite India
Graphite India (GIL) reported a disappointing set of numbers for Q4FY20 wherein the company reported a loss at both the EBITDA and PAT level. On a consolidated basis, Graphite India reported capacity utilisation of 41%, lower than our estimate of 50%.Consolidated topline for the quarter was at Rs 602 crore (down 64% YoY, 6% QoQ, our estimate of Rs 530.7 crore).On the back of higher than expected operating cost, Graphite India reported a loss at EBITDA level. EBITDA loss was at Rs 26 crore (our estimate of EBITDA profit of Rs 66.3 crore).During the quarter, there was reversal of Rs 61 crore out of the write-down of Rs 490 crore in Q3FY20. Adjusting for same, the EBITDA loss for the quarter was at Rs 87 crore. The ensuing consolidated net loss for the quarter was at Rs 7 crore.
Outlook
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.
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