1.1: Company Overview: GrafTech International Limited (NYSE: EAF) manufactures graphite electrode products essential to produce electric arc furnace for steel producers. Kalkine’s Global Fully Charged Report covers the Investment Highlights, Management Insights, Key Financial Metrics, Risks, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.
The top 10 shareholders together form ~71.57% of the total shareholding. Brookfield Asset Management, Inc. and Fidelity Management & Research Company LLC are holding maximum stakes in the company at ~24.91% and ~12.84%, respectively.
In 2QFY23, EAF’s net sales increased by nearly 33.7% on a sequential basis, which was largely supported by the gradual recovery from the temporary suspension on Mexico facility. Below is captured other metrics showing the quarterly trend of Net Sales and Current Ratio since 2QFY22:
The stock price dipped by ~11.05% in last 1 month and over the last 6 months, stock prices went down by ~31.78%. The stock has a 52-week low and 52-week high of USD 3.32 and USD 6.74, respectively, and is currently trading below the mid-range of the 52-week-high-low levels. EAF was last covered in a report dated ’8 August 2023’.
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.
Note 1: Past performance is neither an indicator nor a guarantee of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 23 October 2023. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.
Technical Indicators Defined: -
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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