Vinati Organics - Committed To Innovation: HDFC Securities

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..HDFC Securities Institutional Equities.Vinati Organics Ltd. will be commercialising projects worth approximately Rs 8 billion over the next two quarters, which will fuel the company’s growth from FY25 to FY27E. Revenue and Ebitda CAGR over FY24-27E are expected to be 19%/20%. The addition of a new range of products in its subsidiary, Veeral Organics Pvt Ltd., will help Vinati Organics diversify its customer base. The Anisole route process used by the company to produce these products is both environmentally friendly and cost-effective. The merger of Veeral Additives with Vinati Organics is maximising efficiency in the company’s antioxidants value chain. Vinati Organics is fully backwards integrated, from IB to Butyl Phenols manufacturing and further into antioxidant production. The company is also expanding its ATBS capacity by 33% to 60KTPA to meet rising demand. Cost efficiency through integration and improved economies of scale will help sustain margins. We expect an adjusted profit after tax CAGR of 19% over FY24-27E, with return on equity improving from 15.5% in FY24 to 17.2% in FY27. Currently, the stock is trading at 50/40.2 FY25 and FY26, which we believe is contextually high. Therefore, we are maintaining a Sell recommendation on Vinati Organics with a target price of Rs 1,491..Click on the attachment to read the full report:.Cement Q2 Results Preview: Weak Pricing Adds To Woes Of Seasonally Weak Quarter.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.

Vinati Organics - Committed To Innovation: HDFC Securities

Currently, the stock is trading at 50/40.2 FY25 and FY26, which the brokerage believes is contextually high, hence maintains Sell rating with a target price of Rs 1,491.

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Vinati Organics - Committed To Innovation: HDFC Securities

Currently, the stock is trading at 50/40.2 FY25 and FY26, which the brokerage believes is contextually high, hence maintains Sell rating with a target price of Rs 1,491.

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