Mumbai: GMM Pfaudler
in its analyst day conference, gave a positive growth outlook. The company was confident of achieving its FY25 guidance. They expect a revenue CAGR of 14% over FY22-FY25E to Rs 3700 Cr and EBITDA CAGR 24% to Rs 630 Cr. The company also intends to maintain its leadership position and increased profitability in their GLE business. Their strategy for non-GLE and systems business is to grow revenue via cross-selling opportunities and exploring new application areas.
The company remains focused on innovation and M&As to drive growth. The company announced that their Capex
will be 3% of revenue. Commenting on the strong demand coming in from India
, US and Europe
, the company said it has an order booking of 6-month in India, 1-year in Europe and 2-year in Mavag (subsidiary) and is not seeing any slowdown in order intake. Demand in Europe is mainly driven by retrofitting and renovation of existing factoring as company are preparing for lowering dependence on China
owing to the China+1 strategy gaining traction.
Some of the other factors that are contributing to the strong growth prospects for the company are commodity like steel and LNG
price normalizing and higher growth in the service business.
Based on the guidance GMM Pfaudler share hit a 52-week high of Rs.2,096 as they rallied 10% on the BSE
in Tuesday’s intra-day trade amid heavy volumes. The stock has surged 26% in the past one week, on strong growth outlook.
According to the company, the government’s focused thrust on positioning India as a global sourcing hub, a reliable alternative to China, on becoming self-reliant, coupled with its efforts in moving up the Global Ease of Business ranking is expected to attract investments into India. These efforts should open interesting growth opportunities for GMM Pfaudler.
“The strong growth is also expected owing to the increasing market size, investments, and exports in the pharmaceuticals, specialty chemicals, and agrochemical industries in the next 5 years,” GMM Pfaudler said in its FY22 annual report.