Arihant Capital's research report on Vishnu Chemicals
Vishnu Chemicals Ltd. is a leading manufacturer of chromium and barium chemicals. It delivered robust earnings for the quarter ending March 2022. The company completed its major capital expenditure cycle which included backward integration in its chromium facility and expansion of its barium plant capacity. Both the operations underwent trial run in Q3FY22 and was commercialized by Q4FY22. The chromium vertical contributes about 85% of the consolidated revenues, while the remaining 15% was attributed to the barium segment.
Factoring in its sturdy growth going ahead, we value the company at a P/E multiple of 15x its FY24E EPS of INR 141.1 and revise our target price upwards to INR 2,116 per share (earlier TP: INR 1,892 per share). Accordingly, we reiterate our BUY rating on the shares of Vishnu Chemicals Ltd.
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