Vinati Organics Ltd., incorporated in the year 1989, is a Mid Cap company (having a market cap of Rs 20086.18 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 stock is trading at 36x FY23E EPS of INR50.5 and 26x FY23E EV/EBITDA, with attractive return ratios of ~25% (+600bps v/s FY21). It has a fixed asset turnover of 1.3x, which is likely to double over the next three years. The brokerage expects a 34% EBITDA CAGR over FY21–24E and value the company at 43x FY23E EPS to arrive at TP of INR2,170. The brokerage maintains a BUY rating on the stock.
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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