Galaxy Surfactants

Puspendu

Galaxy is one of India’s leading manufacturers of surfactants and speciality ingredients for the personal and home-care industries with a portfolio of speciality formulation ingredients for oral, skin care, hair care and home care applications. The portfolio of over 200 products is marketed to over 1750 customers in more than 80 countries.

About the company :

  • One of the leading players in the world of Surfactants and Specialty Care Ingredients exclusively focused on catering to the Home and Personal Care Industry
  • Range of customers include multi-nationals like (Unilever, Henkel etc), regional as well as local customers
  • 7 State of the Art Plants with 5 Manufacturing Facilities in India, 1 in Egypt and 1 in USA
  • 9/10 Indian Consumers use Products which have Galaxy’s surfactants or specialty care products atleast once in their Daily Routine.
  • Path Breaking Innovation that is ‘Green’ across – right from the ingredients to the manufacturing process. Awarded the ICIS Innovation Award in 2018 for its Green Process for manufacturing Amino Acid Surfactants (Mild Surfactants). 
  • Since 2000, the company has been granted 84 patents with 17 applied for.
  • Steady growth in Product portfolio over the years
  • To know more about the product categories and formulations, please click here.
  • Global Footprint : Indian MNC manufacturing 200+ products, caters to 1750+ customers in 80+ countries
  • Business Snapshot : Vertically integrated in Home & Personal Care industry
  • Segment Highlights :

Financial Performance – Overview

Performance Snapshot :

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Stock performance since listing :

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Comments :

  • The company operates in a sector that has reasonable stability in its long term demand and growth outlook
  • Significant entry-barriers give stability to the growth prospects of the company
  • Focus on innovation, close collaboration with clients in product development and partnership with customers as “Brand custodians” leads to competitive advantage
  • The company management continue to have the first generation promoters driving the company. The transition in leadership at some point in future needs to be watched carefully.
  • Profitability was impacted in the recent quarters on account of rising input cost
  • Inflationary pressures continue to impact demand in Africa & Middle East. Slowdown in Europe impacts speciality chemical volumes
  • While supply (costs) show improvement, the demand outlook remains uncertain in the near term.
  • The stock price has corrected by about 35% from is peak levels of around Rs.3500. 
  • The stock price may continue to remain under pressure in the near term, even though the business remains robust and poised for growth in the long term.  

[Disclosure : Author currently has a long exposure in this stock]

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