Emkay Global Financial's research report on Vishnu Chemicals
We expect VCL to double its EBITDA over FY24-27E, led by i) strong volume growth in the Barium segment, ii) incremental contribution from derivatives like chrome metal and chrome oxide green (COG) in the Chromium segment, and iii) benefits led by backward integration into soda ash, chrome ore, and barite. With raw material prices easing and contribution of derivatives increasing, spreads are likely to improve in the Chromium segment (virtually nil competition from China). Volume ramp up and market share gains in the Barium segment are likely to pull the company into a unique growth orbit, with potential for capacity expansion. We expect VCL to log revenue/EBITDA/PAT CAGR of 19%/22%/28% over FY24-27E.
Outlook
We initiate coverage on Vishnu Chemicals (VCL) with BUY and Dec-25E TP of Rs600 (20x Dec-26E EPS).
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