Goodluck India (Buy) – The Hindu BusinessLine

Target: ₹947

CMP: ₹728.85

Goodluck India Ltd is among the leading manufacturer of wide range of Engineering structures, Precision/Auto Tubes, Forging for Defence & Aerospace, CR products and GI pipes. Established in 1986, the company has transformed itself from manufacturing regular steel products to a premier engineering solutions provider).

The company has strategically shifted its focus on High Margin Value Added Products and High growth sectors such as Auto, Solar, Railways and Defence and Aerospace. Headquartered in Ghaziabad, the company has a manufacturing facility of 4,50,000 tonnes per annum (TPA) situated in Sikandrabad (UP) and Kutch (Gujarat), India with a workforce of more than 4,000 employee strength.

Going ahead, we believe Goodluck India Ltd has stellar growth potential due to: Foray into Hydraulic tubes business by successfully establishing a 50,000 TPA facility with plans to double it to 1,00,000 TPA in the future, along with; successful establishment of high-margin defence business through its subsidiary for the manufacturing of artillery gun shells; Healthy business relations with marquee clients across the public and private domain; anticipated expansion in EBITDA/tonne post stabilisation of operations across the newly set up hydraulic tubes and defence and aerospace business; and positive demand outlook for solar torque tubes in the long run.