Outlook and Valuation: We expect GMM Pfaudler to post CAGR of ~23%/39% in revenue/ earnings over FY19-22E. Management has indicated that the company is going to add two more gas based furnace from Q2FY21 which will help drive the GL business. Management also sounded positive on the heavy engineering business which is expected to scale up significantly in FY21. Hence, we recommend Accumulate with a target price of Rs.3437 (30x FY2022E EPS).

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