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
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%.
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
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.