Motilal Oswal has given a BUY rating to Galaxy Surfactants with a target price of Rs 3,865. The company is well-positioned to take advantage of the growing personal care market in India, which is seeing a shift towards premium products due to increased disposable incomes and consumer awareness, especially in rural areas.

Galaxy Surfactants is expected to experience strong growth in various markets, including India and developed regions. The company predicts a volume CAGR of 9% from FY24 to FY27, driven by strong domestic demand and a recovery in specialty care product volumes.

The stock is currently trading at around 22 times the estimated FY26 EPS and approximately 14 times the FY26 EV/EBITDA. The valuation is based on a target of 30 times the estimated EPS for September 2026, indicating confidence in the company"s growth prospects despite ongoing macroeconomic challenges.