One-offs and Red Sea challenges hurt margins

11 Mar 2024
5 Min read 
  • Galaxy Surfactants reported lower-than-expected EBITDA/kg and PAT due to one-offs and challenges in the Red Sea region.
  •  The company achieved a total volume growth of 8% YoY, with volume momentum sustaining in India and AMET regions.
  •  Red Sea escalations impacted quarterly volumes, but management is confident of achieving volume growth in the guided range for FY24.
  •  Inflation and higher freight costs are concerns, but positive developments in commodity prices and demand in North America are expected.
  •  The stock is currently trading at a reasonable valuation and has a target price of INR3,500.
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