Espirito Santo retains 'buy' rating on GSFC
Espirito Santo retained 'Buy' rating on GSFC but reduced fair value to Rs 86 from Rs 96 earlier on continued slowdown in caprolactam and recent high benzene prices.
By ET Bureau |
Espirito Santo retained 'Buy' rating on GSFC but reduced fair value to Rs 86 from Rs 96 earlier on continued slowdown in caprolactam and recent high benzene prices.
"The caprolactam market has been more sluggish than we initially estimated as demand for its application in nylon fibres for apparel and automobiles remains low," analysts at the brokerage firm said.
They also expect GSFC's fertiliser segment to remain subdued due to price hikes and subdued monsoon.
The brokerage has cut its FY13 and FY14 estimated EPS estimates by 5% and 13% respectively.
They retained the 'Buy' rating as valuations continue to look cheap at 5 times eFY14 earnings.
"The caprolactam market has been more sluggish than we initially estimated as demand for its application in nylon fibres for apparel and automobiles remains low," analysts at the brokerage firm said.
They also expect GSFC's fertiliser segment to remain subdued due to price hikes and subdued monsoon.
The brokerage has cut its FY13 and FY14 estimated EPS estimates by 5% and 13% respectively.
They retained the 'Buy' rating as valuations continue to look cheap at 5 times eFY14 earnings.
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