Company Update - Gandhi Special Tubes - ICICI Direct

GST reported a robust operational performance in FY21.

- Net sales for the year were at Rs. 114 crore, up 40% YoY

- EBITDA in FY21 was at Rs. 45 crore with attendant margins at 39.4%

- Consequent PAT in FY21 was at Rs. 36 crore, up 70% YoY

Key triggers for future price performance

- With a cyclical recovery under way in its key user segments (construction equipment, commercial vehicles) and steady prospects in the tractor space, we expect GST to report sales CAGR of 15% over FY21-23E

- EBITDA margins are slated to remain elevated at ~38% with RoCE inching up to 30% in the aforesaid timeframe (FY21-23E)

- With low capex spends, GST has a history of rewarding shareholders with healthy dividends and buybacks. We expect the trend to continue with recent dividend declaration of Rs. 9/share for FY21 & buyback announcement amounting to Rs. 42 crore at Rs. 550/share for 6% equity capital (yet to open)

For details, click on the link below: Link to the report

Shares of GANDHI SPECIAL TUBES LTD. was last trading in BSE at Rs. 474.35 as compared to the previous close of Rs. 471.05. The total number of shares traded during the day was 5139 in over 569 trades.

The stock hit an intraday high of Rs. 488 and intraday low of 467.35. The net turnover during the day was Rs. 2457313.

Source : Equity Bulls

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