Buy Vinati Organics; target of Rs 2300: Sharekhan

Sharekhan's research report on Vinati Organics

Company had a strong FY25 with Revenue/PAT growth of 18%/26% respectively after a decline in FY24. 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 40x on its FY27 EPS and arrive at a TP of Rs. 2,300, The stock is trading at 43x/34x its FY26/27 EPS.

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