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Outlier in Focus – Graphite India

GIL-Logo.png

Outlier in Focus – Graphite India
We come across a large number of interesting stocks in Capitalmind SNAP Outliers, our discovery tool for stocks with momentum. See a video of how Outliers works, and how to use Outliers to find all-time highs. Here’s a stock we found interesting that’s been an outlier. Catch them all here.


Outlier in Focus – Graphite India
Graphite India (GIL) manufacturer of Graphite Electrodes as well as Carbon and Graphite Specialty products .
GIL has 4 manufacturing facilities  while the EU market while the foreign operations are looked at by the subsidiary based at Nuremberg, Germany with an Electrode capacity is 18,000 tons per annum.
Outlier in Focus – Graphite India
Graphite India is the largest Indian producer of graphite electrodes by capacity which accounts for 12.6% of the global electrode capacity .
Outlier in Focus – Graphite India
Other products manufactured by the company includes Calcined Petroleum Coke & Carbon Electrode Paste, Glass Reinforced Plastic Pipes and High Speed Steel & Alloy Tool Steels.
Outlier in Focus – Graphite India
GIL also has a power generation capacity of 33MW through hydel and multi-fuel routes which is basically used as captive supply for the graphite electrodes business.

FY-2017 Financial Performance

Outlier in Focus – Graphite India

  1. Average capacity utilization was 74% in FY2017 as compared to 62% in FY2016 .
  2. Decreased operating profit due to lower electrode prices coupled with higher input costs
  3. Reduced borrowings has led to a fall in finance charges

Outlier History

Touching a month high of Rs. 125.5/-, the stock has now breached its all time high of Rs. 152.95/-.
Outlier in Focus – Graphite India

Valuation:

Graphite trades at a PE ratio of 27 times its 4 quarter trailing earnings. This is expensive given the low / single digit Return on Equity the stock has been seeing for quite a while now.

Stock Price

The stock has witnessed multiple breakouts just in the month of April with the price kissing the 52 week high of Rs. 170/-.
Outlier in Focus – Graphite India