Rossari Biotech Q2 Results Review - New Capacities To Drive Volume Growth In FY26: Nirmal Bang

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.Rossari Biotech Ltd.’s Q2 FY25 operating performance came below consensus estimates on lower than expected HPPC^ revenue growth and elevated costs. Similar to previous quarter, Ebitda growth (~4% YoY) is lagging behind gross profit growth (~12% YoY) on account of higher freight cost, professional fees and fresh hiring related expenses in Buzil Rossari.  Exports grew by ~32% YoY in H1 FY25 vis-a-vis Domestic growth of 5%. New customer acquisition in exports has come at the cost of margin as initially Rossari is bearing the freight burden under the current environment.  While we do not see immediate levers for margin expansion, Rossari is in a position to deliver double digit volume growth over the next two-three years on the back of TAM expansion in HPPC and new capacity addition, in our view. Maintain Buy after rolling forward the valuation to Sep’26E at 25 times PE (two/three year average PE 30 times/40 times) with a revised target price of Rs 955 (earlier Rs 940)..Click on the attachment to read the full report:.Cyient DLM Q2 Results - Motilal Oswal Retains 'Buy' Rating On The Stock; Here's Why.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Rossari Biotech Q2 Results Review - New Capacities To Drive Volume Growth In FY26: Nirmal Bang

The brokerage maintains 'Buy' rating on the stock and revises target price.

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Rossari Biotech Q2 Results Review - New Capacities To Drive Volume Growth In FY26: Nirmal Bang

The brokerage maintains 'Buy' rating on the stock and revises target price.

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