Chemicals
Speciality Chemicals
from 1,290 today
We maintain our Hold rating with an updated price target of Rs 1,403 implying 24x FY28E EPS on account of near-term concerns. Vinati Organics is well positioned for medium-term growth, supported by ~15% volume growth guidance for FY27, ATBS capacity expansion, the expected recovery in ATBS demand and the ramp-up of Veeral Organics.
VO reported revenue of INR7bn in Q1FY27, up 15% QoQ and 28% YoY, driven by higher exports and strong antioxidant volumes. We expect revenue to grow 13% in FY27, with an EBITDA margin of 25.8%, and maintain our 'Accumulate' rating with a target price of INR1,443.
Vinati Organics reported a revenue growth of 28% YoY while EBITDA margin contracted due to raw material volatility. We reiterate BUY with a target price of INR1,550, driven by capacity ramp-ups in the ATBS segment and VOPL scale-up.
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