Buy Vinati Organics; target of Rs 2100: Sharekhan

Sharekhan's research report on Vinati Organics

Company reported a Revenue of Rs. 648 crore, up 17.5% y-o-y. Operating profit of Rs. 180 crore increased 20.4% y-o-y with the OPM of 27.8% (up 58 bps y-o-y). Net profit of Rs. 123 crore increased 18.1% y-o-y. ATBS and Antioxidants registered a strong 30%/70% revenue growth in FY25. The management expects a 20% revenue growth for the next three years led mainly by ATBS and Antioxidants (AOs), with long term sustainable blended EBITDA margin of 26-27%.

Outlook

We maintain a Buy on the stock, assigning a multiple of 37x on its FY27 EPS and arrive at a TP of Rs. 2,100, The stock is trading at 40x/32x its FY26/27 EPS.