IIFL Research's Pick: Buy Graphite India with Target Rs 665

IIFL Research has buy call on Graphite India with a target price of Rs 665. The current market price of Graphite India is Rs 639.7

About Graphite India:

Graphite India, a part of the Aditya Birla Group, is a leading manufacturer of graphite electrodes and other graphite products. Listed on the National Stock Exchange of India (NSE), the company has operations in India, the United States, Mexico, and Germany. Its products serve industries such as steel, automotive, electronics, and specialty materials. Graphite India has a strong focus on sustainability and is committed to reducing its environmental impact. The company has received numerous awards and accolades for its performance and sustainability initiatives.

52 Week Price Trend:

Despite reaching a high of Rs 626.4 in the past 52 weeks, GRAPHITE shares are currently trading at Rs 639.7. This represents a significant increase from the 52-week low of Rs 251.7, indicating a strong upward trend for the company. The rise in share price suggests investors' confidence in GRAPHITE's performance and future prospects, potentially driven by factors such as increased demand for its products or positive industry outlook.

Stratzy's Analysis:

GRAPHITE has received a BB- rating under Stratzy's MOST Framework, indicating medium Fundamental Risks. This rating is based on an assessment of the company's Management, Outlook, Safety, and Trend. The framework provides a comprehensive evaluation of a stock's fundamental strength and assigns a score ranging from AAA (lowest risk) to CC- (highest risk).

Company's Fundamentals:

Graphite India (NSE: GRAPHITE) is currently trading with a Stock PE (Price to Earnings) ratio of 251.06, indicating that investors are willing to pay 251.06 times the company's annual earnings per share to own its stock. The PB (Price to Book) Ratio of 2.11 suggests that the market value of the company's assets is 2.11 times higher than its book value, indicating a potential undervaluation or growth potential. Additionally, the Dividend Yield of 1.42% represents the annual dividend paid to shareholders as a percentage of the current stock price, providing investors with a source of passive income.

Fundamental and Technical information provided in this blog were last updated on 12 Mar, 2024

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