GALAXYSURF

Over the past 10 years, GALSURF has demonstrated its ability to scale profitably while navigating cyclical and regional challenges. During FY15-25, the company doubled its total volumes, supported by deeper market penetration and category expansion, particularly in rinse-off personal care and home care products. During this same period, EBITDA tripled, driven by operational efficiencies, product mix enhancement, and innovation. PAT grew 5x, reflecting sharp execution and cost control. GALSURF achieved an average RoCE of 22%, a testament to disciplined capital allocation and return-oriented investment. EBITDA/kg also doubled, highlighting the company’s ability to extract more value per unit of product. Despite macroeconomic headwinds in the early part of this decade, including inflation and demand volatility, the company maintained strong profitability, setting a firm base for future expansion. Outlook The stock is currently trading at ~22x FY27E EPS of INR106 and ~14x FY27E EV/EBITDA. We value the company at 30x FY27E EPS to arrive at a TP of INR3,180. We reiterate our BUY rating on the stock.