Galaxy Surfactants reported mid-single digit volume growth in Q2FY25, driven by strong performance in the US and Europe. The company achieved an 8% year-on-year increase in revenue, supported by effective pricing strategies. Despite high valuations, the medium-term outlook remains positive due to a defensive profile and anticipated benefits from specialty products.
Motilal Oswal has reiterated a BUY rating for Galaxy Surfactants, setting a target price of Rs 3,865. The company is poised for significant growth in FY25, driven by rising disposable incomes and a shift towards premium personal care products, with an estimated volume CAGR of 9% from FY24-27. Currently trading at approximately 22x FY26E EPS, Galaxy Surfactants aims for PAT growth exceeding EBITDA growth, supported by a focus on profitability amidst macroeconomic challenges.
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