Buy Rossari Biotech; target of Rs 813: Deven Choksey

Deven Choksey is bullish on Rossari Biotech has recommended buy rating on the stock with a target price of Rs 813 in its research report dated October 24, 2025.

Broker Research

October 24, 2025 / 11:48 IST

buy

26 Aug, 2025 12:21

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Deven Choksey's research report on Rossari Biotech

Revenue stood at INR 1,96,069 mn, up 20.3% YoY driven by strong domestic cement volumes (+6.8%) and improved realisations (+4.5% YoY), though declined 7.8% QoQ on seasonally weaker demand. Domestic Grey Cement Volume grew 7.1% YoY. The UltraTech brand domestic volume grew significantly by 13.2%. Premium product mix grew 14% YoY EBITDA came at INR 30,943 mn, up 52.6% YoY, aided by cost efficiencies, and better operational leverage; sequentially down 8.5% QoQ. EBITDA margin expanded 334 bps YoY to 15.8%, but moderated 495 bps QoQ due to lower QoQ sales volume and other factors impacting performance, such as maintenance and staff costs, coinciding with the seasonal weakness (monsoon). PAT stood at INR 12,316 mn, increasing 75.2% YoY, driven by strong EBITDA growth. PAT margin improved 197 bps YoY to 6.3%, while contracting 418 bps QoQ due to seasonal weakness and higher effective tax rate.

Outlook

We have rolled forward our valuation basis to Sept’27 estimates. We value Rossari Biotech at a 22.0x Sept’27 EPS, implying a target price of INR 813, supported by strong momentum in HPPC and AHN segments and improving breakeven trajectory in the institutional business. We reiterate our “BUY” rating on the stock.

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