Buy Fine Organic Industries target of Rs 5852 Prabhudas Lilladher

Prabhudas Lilladher is bullish on Fine Organic Industries has recommended buy rating on the stock with a target price of Rs 5852 in its research report dated November 10, 2024.

Broker Research

November 12, 2024 / 10:22 IST

Buy

26 Aug, 2025 12:21

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Prabhudas Lilladher's research report on Fine Organic Industries

We upgrade our rating to ‘Buy’ as the new capex will boost future earnings for the company. Fine Organic (FINEORG IN) reported a standalone revenue of Rs5.9bn, marking 26% YoY and 17% QoQ increase. Growth was largely driven by a 48% YoY surge in exports. However, rising vegetable oil prices during the quarter affected the company’s gross margins. Looking ahead, we expect further growth in export volumes as global demand for the company’s product portfolio remains robust. In line with this demand, Fine Organic has announced Rs7.5bn capex to establish a new greenfield manufacturing facility. Currently, all of the company's plants, except the Patalganga plant (food-grade), are operating at optimal capacity.

Outlook

We believe the new facility will be a key driver of future growth for the company and is expected to have a peak revenue Rs15bn at 2x asset turnover and will start contributing to topline majorly from FY28. FINEORG is currently trading at ~27x FY27E EPS. We upgrade to ‘BUY’ rating with revised TP of Rs5,852 at 33x FY26E/FY27E EPS.

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