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Last Updated : May 14, 2019 04:25 PM IST | Source: Moneycontrol.com

Buy Vinati Organics; target of Rs 2034: HDFC Securities

HDFC Securities is bullish on Vinati Organics has recommended buy rating on the stock with a target price of Rs 2034 in its research report dated May 13, 2019.

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HDFC Securities' research report on Vinati Organics


The company reported another strong quarter with sales jump of 39.5%YoY to Rs 2.96bn driven by volume growth 20%+ in ATBS. Sales in IBB that were impacted by the closure of the BASF plant in 3QFY19 resumed taking volumes and is expected to normalise in ensuing quarters. ATBS plant capacity augmentation from 26ktpa to 40ktpa will be completed by the end of 2QFY20 with a capex of Rs 1.1bn. We expect volume growth at ~20% CAGR over FY20-22E based on growth in global demand coupled with a shortage in supply.


Outlook


We maintain BUY on Vinati Organics (VO) after beat on our estimates. Our target is Rs 2,034sh (25x Mar-21E standalone EPS).


For all recommendations report, click here


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First Published on May 14, 2019 04:25 pm
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