Tera Yatırım Sets TRY 296.17 Target Price for Kıraç Galvaniz

Tera Investment initiated research coverage on Kıraç Galvaniz (TCKRC) with an "Outperform" recommendation for the stock. The institution set a 12-month target price of TRY 296.17 based on a reference price of TRY 155.90, pointing to approximately 90% upside potential. The company is expected to achieve net sales of TRY 20.7 billion and net profit of TRY 6.62 billion in 2027.

In Tera Investment's company report on Kıraç Galvaniz (TCKRC) dated 14 August 2026, key investment themes highlighted included increased production capacity, the Bozüyük facility, new product groups in defense and energy sectors, and growth potential in European markets.

The report calculated a 12-month target price of TRY 296.17 for TCKRC based on a reference price of TRY 155.90. This target price was noted as corresponding to approximately 90% upside potential, with an "Outperform" recommendation issued for the stock.

Strong revenue and profitability growth expected in 2027
According to Tera Investment's projections, Kıraç Galvaniz's net sales are expected to reach TRY 6.9 billion in 2026 and TRY 20.7 billion in 2027.

The company's EBITDA is projected to rise from TRY 2.8 billion in 2026 to approximately TRY 8 billion in 2027, while net profit is expected to increase from TRY 2.35 billion to TRY 6.62 billion.

The report notes that based on 2027 estimates, the company's EV/EBITDA multiple could decline to 3.5x and TCKRC could trade at approximately a 49.7% discount compared to global peers.

DCF model target price at TRY 367.39
Tera Investment employed both Discounted Cash Flow (DCF) analysis and comparable company multiples in valuing Kıraç Galvaniz.

When the DCF method was applied independently, a target price of TRY 367.39 was reached for TCKRC, with the final valuation assigning 35% weight to the DCF method and 65% weight to comparable company multiples.

Following this weighting, a 12-month target price of TRY 296.17 was set for the company.

Bozüyük facility increased capacity approximately fivefold
The report centers on the Bozüyük investment as the core of Kıraç Galvaniz's growth story.

With the Bozüyük facility commencing operations in 2025, the company's production capacity increased approximately fivefold, with annual hot-dip galvanizing capacity reaching 220,000 tons and metal fabrication capacity reaching 180,000 tons.

Tera Investment views the investment as a strategic step not only in terms of capacity expansion, but also in reducing unit costs and improving operational efficiency.

Defense industry emerging as new growth area
Beyond traditional road safety and galvanizing operations, Kıraç Galvaniz's expansion into new product groups for the defense and energy sectors was highlighted as a key focus of the report.

The report cited ongoing work with ASELSAN NET, inclusion in the YETEN program, receipt of Facility Security Clearance, and acceptance to the NSPA and MKE supply platforms as developments supporting the company's growth potential in the defense sector.

The company's subsidiary in Romania, certification efforts targeting European markets, and access to international tender channels were presented as important opportunities for deploying increased production capacity in overseas markets.

Başköy investment could support second growth phase
In the Tera Investment report, the Başköy investment is evaluated as a key component of the "second growth phase" for Kıraç Galvaniz following the capacity expansion initiated by the Bozüyük facility.

With new investments coming online and increased capacity converting to sales volume, strong revenue and profitability growth is expected for the company, particularly from 2027 onwards.

TRY 8 billion revenue target could create upside potential
In Tera Investment's report, net sales expectations for Kıraç Galvaniz in 2026 were calculated at TRY 6.896 billion.

However, should the company achieve its stated TRY 8 billion end-of-2026 revenue target, it is noted that Tera Investment's current assumptions could be exceeded. According to the report, this scenario could result in the company's financial performance exceeding expectations and creating valuation potential above the 12-month target price of TRY 296.17.