Fundamental Analysis

GMM PFAUDLER LIMITED 

Ticker : 505255 
BUY : Rs 4484.85 
Target : Rs 5,300

GMM Pfaudler Limited is known as a leading supplier of engineered equipment & systems, which cater to the needs of critical applications in the global chemical and pharmaceutical markets. On the consolidated quarterly front, the company recorded net sales and operating income of Rs 201.81 crore for Q3FY21, which is an increase of 29.39 per cent from its net sales as well as operating income of Rs 155.97 crore reported for Q3FY20. The operating profit gained 31.8 per cent to reach Rs 44.61 crore in Q3FY21 from Rs 33.85 crore posted in Q3FY20. The net profit was reported at Rs 23.11 crore in Q3FY21 from Rs 21.05 crore in Q3FY21, recording gains of 9.78 per cent. The company’s end-user segments continue to do well, backed by a strong recovery in the pharmaceutical sector, which have led to a healthy order backlog across all the product lines of the company. Also, the company reported that in context to the acquisition of the international business of Pfaudler Group, it has received all foreign investment and antitrust approvals, which will lead to the closure of the transaction soon. Hence, we recommend BUY.