Moneycontrol
May 17, 2017 04:05 PM IST | Source: Moneycontrol.com

Buy Vinati Organics; target of Rs 960: HDFC Securities

HDFC Securities is bullish on Vinati Organics has recommended buy rating on the stock with a target price of Rs 960 in its research report dated May 15, 2017.

Buy Vinati Organics; target of Rs 960: HDFC Securities

HDFC Securities' research report on Vinati Organics


Vinati Organics (VOL) reported strong growth in revenues at Rs 2.0bn (+26% YoY) in 4QFY17, mainly led by a substantial contribution from products launched in FY17 (15% of revenues).


Outlook


VOL remains one of our preferred picks, based on (1) Confidence in its new product launches, (2) Traction in ATBS demand, (3) High pricing power, given VOL’s niche position and product selection, (4) Strong margins and return ratios (RoE/RoIC of 20%+), and (5) A healthy B/S (net cash). Maintain BUY with an increased TP of Rs 960 (25x FY19E EPS).


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