Hi everyone,
I used management’s ₹2,500 crore revenue guidance to construct what FY26 might look like for Garware Hi-Tech Films Limited
Based on management’s guidance, I estimate a 22.1% revenue CAGR and a 41.4% EPS growth over the next two years – from FY24 to FY26
There were 2 key assumptions of note:
Firstly, I went with 22% EBITDA margin – which is in line with management’s 20-25% guidance
Secondly, GHFL holds ₹275 crores in debt and arbitrage mutual funds. Now with profits of ₹19.4 crs flowing into last year’s P&L as “other income” (page 149) & combined with gains from exchange rate fluctuations (₹16.3 crs) – it’s a bit tricky to estimate “other income”. Hence I’ve conservatively kept it at ₹40 crores for FY25 & FY26
To put it all together, I’m getting an EPS of ₹174.4 for FY26 – which is exactly double of where the company closed in FY24
Hope this helps.
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