Vinati Organics Ltd.

NSE: VINATIORGA | BSE: 524200 | ISIN: INE410B01037 |Industry: Commodity Chemicals
|Expensive Star
1258.05 33.70 (2.75%)
NSE Oct 23, 2020 15:31 PM
Volume: 53,343

Vinati Organics Ltd.    
14 Nov 2019
HDFC Securities
VO has corrected 17% from its peak (Sep-19) and is trading at 22.8/19.4x FY21/22E PER. We believe it should command premium valuations owing to (1) Its impeccable product selection (2) High market share globally (3) Best in class return ratios and earnings trajectory. We upgrade VO to BUY despite muted performance in 2QFY20. VO will generate RoE of 30.5/27.1/24.8% and RoIC of 29.6/30.7/33.1% in FY20/21/22E. Valuations are contextually low at 22.8/19.4x FY21/22E PER. Our TP of Rs 2,331/share is based on a 25x Sep-21E EPS.
Vinati Organics Ltd. has gained 29.69% in the last 3 Months
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