BackYes Securities bullish on multibagger stock that has rallied 370% this year, raises target price
The brokerage has maintained its Buy rating on the multibagger stock with target price revised upwards
PremiumAcrysil Ltd registered a strong second quarter wherein company reported 58% year-on-year (YoY) sales growth on account of strong demand for Quartz sinks in overseas markets owing to sharp uptick in home furnishing trend backed by shift in demand from stainless steel sinks to Quartz sinks, said Yes Securities.
The brokerage reckons this trend to continue and share of Quartz sinks to total global kitchen sinks is likely to expand from 10% to 20% over coming 5-years. With Acrysil being one of the only 4 Global manufacturers of Quartz sinks via German technology, it expects Acrysil Ltd to report volume growth of 33% CAGR over FY21-24E.
Hence, Yes Securities has maintained its Buy rating on the Acrysil stock with target price revised upwards of ₹1,150 (previous ₹1,023). The multibagger stock has rallied more than 370% this year (year-to-date or YTD) so far, whereas it has skyrocketed over 410% in a year's period.
“Owing to strong demand, Acrysil Ltd has announced another capex of 2L Quartz sinks which will be operational by Q2FY23. Acrysil is also expanding their stainless steel capacity from 90,000 units to 180,000 units by Q4FY22 which should further boost company’s topline. Hence, we expect company to register revenue growth of 33% over FY21‐ FY24E," the note added.
The company's management during earnings conference call stated that demand for quartz sinks has been robust across globe led by surge in home furnishing trend and material shift in demand from stainless steel sinks to quartz sinks.
Management also stated they will revise their internal targets upwards as demand for their products is witnessing massive surge. Acrysil plans to manufacture few of its traded products and expand capacities of existing products.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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