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Buy Visaka Industries; target of Rs 850: Anand Rathi

Anand Rathi is bullish on Visaka Industries has recommended buy rating on the stock with a target price of Rs 850 in its research report dated November 16, 2021.

November 18, 2021 / 12:37 PM IST
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Anand Rathi's research report on Visaka Industries

Healthy V-Next products and a stabilising yarn division helped a seasonally weak Q2. Higher costs are expected to be temporary, and price hikes of AC roofing sheets would help. The expansion (AC roofing sheets, boards) is ending, and phase-II capex will be for the recently launched green products. We retain a Buy rating, at a TP of Rs.850 (earlier Rs.1,079) Expansion to boost growth. AC roofing sheets operated at 72% capacity; V Next at a healthy 94%, leading to the BP division revenue growing 19% y/y to Rs2.4bn. Higher costs, though (cement/pulp/logistics, etc.), hurt margins, which fell 602bps to 13.4%. The 100,000-ton expansion of AC roofing sheets by Jan’22 (and 50,000 tons of boards by Dec’21) would address higher demand generated by a good monsoon and improving rural demand.


We introduce FY24e and retain our Buy rating, with a TP of Rs.850, assigning a 9x multiple to FY24e EPS.


For all recommendations report, click here

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

Broker Research
first published: Nov 18, 2021 12:37 pm

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