Vishnu Chemicals shares gain after Dubai arm gets incorporated

The domestic brokerage firm Nirmal Bang has assigned a ‘buy’ rating to the Vishnu Chemicals stock with a target price of Rs 421 per share.

Shares of Vishnu Chemicals gained about 1 percent in trade on November 24 after the incorporation of a subsidiary in Dubai. At 11:33am, the stock was trading at Rs 322.24 on the NSE.

Vishnu Chemicals expanded its global footprint through a subsidiary, Vishnu International Trading FZE, in Dubai, UAE, it said in a notification to the exchange on November 23.

Also read: Vishnu Chemical Standalone September 2023 Net Sales at Rs 265.23 crore, down 17.51% Y-o-Y

This strategic move aims to focus on the distribution, transmission, and sale of chemicals. The incorporation of Vishnu International Trading FZE signifies a key expansion for the company, leveraging Dubai's status as a business hub for international trade.

Check brokerage views, target price

Domestic brokerage firm Nirmal Bang has assigned a ‘buy’ rating to the Vishnu Chemicals stock with a target price of Rs 421 per share in a recently released report. “Vishnu Chemicals aims to achieve a debt-to-equity (D/E) ratio of 0.6 times within a year and the upcoming capex is expected to be funded through internal accruals. We expect it to deliver strong and steady performance with revenue and profit after tax (PAT) growth at 15 percent and 24 percent over FY23-25. We value the share at 12 times to FY25 earnings per share (EPS) to arrive at a target of Rs 421 per share,” it said.

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This initiative aligns with Vishnu Chemicals' commitment to growth and capability enhancement in the chemicals industry. By establishing a presence in Dubai, the company seeks to tap into new markets, strengthen its supply chain, and maximise global market potential, reflecting a proactive approach to diversifying business operations.

Stock performance

The Vishnu Chemicals stock has given a return of 10.73 percent over the last six months. The benchmark Nifty50 index has given a return of 8.29 percent over the same duration.

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