Buy GMM Pfaudler, target price Rs 4550: JM Financial

JM Financial has buy call on GMM Pfaudler with a target price of Rs 4550. The current market price of GMM Pfaudler Ltd. is Rs 3755.4.

GMM Pfaudler Ltd., incorporated in the year 1962, is a Mid Cap company (having a market cap of Rs 5510.87 Crore) operating in Engineering sector.

Financials
For the quarter ended 31-12-2020, the company reported a Consolidated sales of Rs 201.81 Crore, up 8.35 % from last quarter Sales of Rs 186.25 Crore and up 29.39 % from last year same quarter Sales of Rs 155.97 Crore. Company reported net profit after tax of Rs 23.11 Crore in latest quarter.


Investment Rationale
The brokerage expects the company to register CAGR of 20% and 33% in EBITDA and PAT over FY21-23E. It maintains BUY with TP of INR 4,550, based on 35x FY23E EPS (40x Indian business and 20x global business.