Accumulate Vinati Organics; target of Rs 2002: KR Choksey

KR Choksey recommended accumulate rating on Vinati Organics with a target price of Rs 2002 in its research report dated November 18, 2024.

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November 19, 2024 / 12:09 IST

accumulate

26 Aug, 2025 12:21

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KR Choksey's research report on Vinati Organics

VO revenue came in line with our estimates while PAT surpassed our expectations by 4.9%. Revenue stood at INR 5,533 Mn, up 19.5% YoY (+5.5% QoQ). EBITDA grew to INR 1,337 Mn, up 27.7% YoY (+7.3% QoQ); EBITDA margin came in at 24.2% (+154bps YoY/+41bps QoQ). VO reported PAT of INR 1,044 Mn, up 44.1% YoY (+24.0%), beating our estimates due to higher than projected other income and lower than expected tax rates, resulting in PAT margin expansion by 321bps YoY (+282bps QoQ) to 18.9%. We maintain our FY26E EPS to INR 50.0 and P/E multiple of 40.0x, supported by strong expansion in ATBS capacity by Q4FY25E, enhanced capacity utilization in Antioxidants (AO) segment and ramp-up of the Veeral Organics plant in H2FY25E.

Outlook

Accordingly, we reiterate our target price to INR 2,002. However, we upgrade the rating on the shares of Vinati Organics to “ACCUMULATE” from “HOLD” supported by positive outlook on demand recovery as destocking stabilizes and planned capex likely to begin generating results in H2FY25E and FY26E, providing a potential upside of 9.1%, post correction from our last update.

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