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Budget 2021

Associate Partners:

  • SMC
  • Samsung
  • Volvo

Moneycontrol

Budget 2021

Associate Partners:

  • SMCSamsungVolvo
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Buy Vinati Organics: target of Rs 1550: Sharekhan

Sharekhan is bullish on Vinati Organics has recommended buy rating on the stock with a target price of Rs 1550 in its research report dated January 08, 2021.

January 14, 2021 / 09:02 PM IST
 
 
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Sharekhan's research report on Vinati Organics


ATBS segment’s realisation would also improve as price of key input acrylonitrile rose 20% in November 2020, which in turn could help margin recover in Q4FY2021. Moreover, the demand from pharma, plastic additives, agrochemicals, water treatment chemicals would remain strong. Dominant global market share of 65% in ATBS/IBB, ~12 new products in R&D phase and massive export opportunities in specialty chemical space would drive sustained high double-digit earnings growth even beyond FY2023. Company aims to double revenues over next 3-4 years with long-term sustainable EBITDA margins of 30-35%.


Outlook


We upgrade Vinati Organics to Buy (from Hold) with a revised PT of Rs. 1,550 as a likely volume/margin recovery in key ATBS segment and ramp-up of Butyl Phenol to drive sustained high earnings growth (expect 31% PAT CAGR over FY2021E-FY2023E).


For all recommendations report, click here


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Broker Research
first published: Jan 11, 2021 01:16 pm

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