MUMBAI - Alicon Castalloy Limited has reported a strong performance in the second quarter of FY24, with its Adjusted Profit After Tax (APAT) reaching Rs 18.2 crore, which surpassed the projected Rs 17.1 crore. The company's robust financials are backed by a significant order book that extends to Rs 8687 crore for the period of FY23-29E.
The stock is currently trading at a price-to-earnings (P/E) multiple of 10.8 times and an enterprise value to EBITDA (EV/EBITDA) multiple of 5.5 times based on FY26 estimates. This valuation reflects the market's confidence in Alicon Castalloy's growth trajectory and its ability to sustain profitability.
Alicon Castalloy's positive outlook is further reinforced by Sharekhan's continued 'Buy' rating on the company's shares. The investment firm is optimistic about Alicon Castalloy due to several factors:
- A firm order book that promises steady revenue streams over the next several years.
- Expected margin improvements driven by a superior product mix.
- A strategic focus on electric vehicle (EV) projects, which are anticipated to contribute to the company's growth in the burgeoning EV market.
With these considerations in mind, Sharekhan has set a target price for Alicon Castalloy at Rs 999. This target reflects confidence in the company's future performance and its potential for investor returns. The emphasis on electric vehicle projects is particularly notable as it aligns with global trends towards sustainable transportation solutions.
Investors and market watchers will be keeping a close eye on Alicon Castalloy as it continues to capitalize on its strong order book and navigates the expanding opportunities within the EV sector.
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