Vinati Organics Ltd.

NSE: VINATIORGA | BSE: 524200 | ISIN: INE410B01037 |Industry: Commodity Chemicals
|Expensive Star
1212.00 -34.95 (-2.80%)
NSE Oct 22, 2020 14:39 PM
Volume: 49,748

Vinati Organics Ltd.    
01 Feb 2020
HDFC Securities
We like VO for its (1) Impeccable product selection (2) High market share globally (3) Best in class return ratios and earnings trajectory. However, in the absence of new product pipeline, we believe current valuations are contextually high at 31.1/26.1x FY21/22E PER. Our TP of Rs 2,040/share is based on a 25x Dec-21E EPS. We downgrade VO to NEUTRAL post an underwhelming performance in 3QFY20. Given a demand slowdown for the high margin ATBS and resultantly lower realizations, we cut our EPS estimates for FY21/22E by 13.5/12.6%.
Vinati Organics Ltd. has gained 39.97% in the last 6 Months
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