One-offs and Red Sea challenges hurt margins

Company

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.