Hold Vinati Organics: target of Rs 2243: Sharekhan

Hold

Sharekhan's research report on Vinati Organics

Q1 PAT of Rs. 86 crore, which is an 18% decline q-o-q, fell 22% short of our estimate due to weaker-than-expected revenue and higher raw material costs. Company is focused on product sampling and enhancing the plant’s yield and efficiency. It expects a 15-20% growth for next three years led mainly by higher capacity utilisation in the antioxidant business and a recovery in ATBS demand, with long term sustainable blended EBITDA margin of 26% to 27%.

Outlook

We maintain a Hold rating with a revised PT of Rs. 2243 given a valuation of 52x/43x its FY2025E/FY2026E EPS limits any meaningful upside from CMP.

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