Vinati Organics Ltd., incorporated in the year 1989, is a Mid Cap company (having a market cap of Rs 18500.77 Crore) operating in Chemicals sector.
Financials
For the quarter ended 31-03-2021, the company reported a Standalone Total Income of Rs 286.34 Crore, up 23.02 % from last quarter Total Income of Rs 232.76 Crore and up 9.47 % from last year same quarter Total Income of Rs 261.56 Crore. Company reported net profit after tax of Rs 70.86 Crore in latest quarter.
Investment Rationale
The company guided to ~40-50% revenue growth in FY22 on the pickup in ATBS demand from Jan’21 and the rise in butyl phenol utilisation. The brokerage are upbeat about the company’s performance and maintain a Buy, with the higher target of Rs 2,000, at multiples of 41x FY23e EPS and 30x FY23e EV/EBITDA. Risks: Delay in expansion and scaling up from laboratory to commercial scale; slowdown in R&D.
Promoter/FII Holdings
Promoters held 74.1 per cent stake in the company as of March 31, 2021, while FIIs held 3.5 per cent, DIIs 7.3 per cent and public and others 15.2 per cent.
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