Vinati Organics Ltd.    
28 Sep 2020
1258.05
2.75%
Vinati Organics Ltd. is trading above all available SMAs
Vinati Organics Ltd.    
05 Aug 2020
1258.05
2.75%
buy
Geojit BNP Paribas
We upgrade our rating to Accumulate given capacity expansion, launch of new products and superior margin profile. Q1FY21 revenue declined by 20% YoY led lower contribution from ATBS business due to slowdown in oil & Gas sector. Despite sharp fall in revenues, profitability was cushioned by higher contribution from superior margin IBB business. Going ahead, revenue growth is expected pick-up in H2FY21E led by...
Vinati Organics Ltd. has gained 42.48% in the last 6 Months
Vinati Organics Ltd.    
05 Aug 2020
1258.05
2.75%
Chola Wealth Direct
Background: Vinati Organics Limited (VOL) was established in 1989 to manufacture specialty organic chemicals. It has since grown to become the world's largest manufacturer of IBB & ATBS and India's largest manufacturer of IB & HP MTBE. The company's products are exported to customers in countries across Europe, America, and Asia. Competitive edge in niche specialty chemicals Cost leadership & scale economies in IBB and technological entry barrier in ATBS. The company started with a small capacity of 1,000 TPA and gradually expanded to 26,000 TPA today for its ATBS production, capturing 60% of the market share. The company also commands more than 65% market share in the world for IBB. With consistent...
Vinati Organics Ltd. has an average target of 1017.33 from 5 brokers.
Vinati Organics Ltd.    
04 Aug 2020
1258.05
2.75%
HDFC Securities
BSE: BSE reported lower-than-expected revenue and margin performance in the quarter due to a fall in listing income (-20% QoQ). The core revenue stream improved (transaction charges +20.7% QoQ), led by a jump in cash volume and StAR MF. EBITDA margin was in negative territory (-7.6%) due to a drop in revenue and fixed cost structure. BSE cash market share declined to 6.2% (-113bps YoY) despite a jump in volumes, which we believe can be regained through smart order routing. The StAR MF platform is witnessing strong volume growth (+52% YoY), but realisation will fall from 2Q due to lower pricing. BSE is trying to fight back and build the derivative volume again, but it's still early days. New initiatives like insurance platform, spot exchange and INX are promising, but there is no revenue visibility from them in the near term. The revival of derivatives volume on BSE, smart order routing and interoperability are key triggers to transaction revenue. The value proposed value unlocking of the StAR MF platform is positive and will be closely watched. We arrive at a SoTP-based target price of Rs 565 by assigning 10x multiple to core June-22E PAT (Rs 57/share), Rs 110/sh for the CDSL stake and adding net cash excluding SGF and clearing cash (Rs 397/sh). BSE has net cash of Rs 18bn (~78% of market cap) and a dividend yield of ~5%, which limits downside. Maintain ADD. Vinati Organics: Our SELL recommendation on Vinati Organics with a discounted cash flow based target price of INR 820 (WACC 10%,...
Vinati Organics Ltd. is trading above all available SMAs
Vinati Organics Ltd.    
18 Jun 2020
1258.05
2.75%
buy
Dolat Capital
The de-growth in sales YoY is largely attributed to de-growth in ATBS and IBB volumes. Gross margins improved by 442bps YoY and 509bps QoQ on account of benign RM costs. EBITDA/PAT degrew by 15.1/9.6% YoY to Rs 1.0bn/Rs 746mn respectively. Employee costs were up 21.9% YoY to Rs159 mn, a higher other income up by 57.8% YoY to Rs 162mn and a lower tax rate of 31% against 33% in 4 shielded PAT to Rs 746mn. Vinati Organics has commissioned Butyl Phenols plant and is expected to...
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Vinati Organics Ltd.'s price crossed above SMA30 today
Vinati Organics Ltd.    
18 Jun 2020
1258.05
2.75%
Chola Wealth Direct
Background: Vinati Organics Limited (VOL) was established in 1989 to manufacture specialty organic chemicals. It has since grown to become the world's largest manufacturer of IBB & ATBS and India's largest manufacturer of IB & HP MTBE. The company's products are exported to customers in countries across Europe, America, and Asia. Competitive edge in niche specialty chemicals Cost leadership & scale economies in IBB and technological entry barrier in ATBS. The company started with a small capacity of 1,000 TPA and gradually expanded to 26,000 TPA today for its ATBS production, capturing 60% of the market share. The company also commands more than 65% market share in the world for IBB. With consistent investments in technology and...
Vinati Organics Ltd. has gained 42.48% in the last 6 Months
Vinati Organics Ltd.    
15 Jun 2020
1258.05
2.75%

Vinati Organics (4QFY20): Lacks expansion triggers. Maintain SELL

buy
HDFC Securities
Change in estimates: We tweak our FY21/22E EPS estimates by -2.3/-2.7% to INR 29.5/32.1 to incorporate the company's performance in 4QFY20. Our SELL recommendation on Vinati Organics with a TP of INR 825 is driven by demand slowdown for the high margin 2-Acrylamido 2-Methylapropane Sulphonic Acid (ATBS) that contributes ~60% to its revenue. In the absence of new product pipeline, we believe current valuations are high at 31.0x FY22 PER.
Vinati Organics Ltd. has gained 42.48% in the last 6 Months
Vinati Organics Ltd.    
29 Apr 2020
1258.05
2.75%
HDFC Securities
Chemical companies are directly/indirectly cater to essential sectors such as pharma, agrochemicals, foods, edible oils. Despite having obtained the permission to resume manufacturing in Q1FY21, lack of demand and logistics challenges, particularly supply of finished goods (within India and internationally), force these companies to either keep their plants under shut down or operate at lower utilization. Given the B2B nature of their business, the coronavirus outbreak has had a limited impact on the earnings of chemical companies in our coverage universe. However, owing to logistical challenges for man/materials, plant shutdowns, shortage of manpower and plunge in demand in FY21, we have cut our earnings estimates by 10-39%.
Vinati Organics Ltd. has gained 29.69% in the last 3 Months
Vinati Organics Ltd.    
27 Mar 2020
1258.05
2.75%
buy
CD Equisearch
VOL posted a substantial fall in revenues measuring to 21.3% y-o-y in Q3FY20 (Rs. 238.47 cr vs Rs. 303.05 cr) on the back of lower realizations and stumbling revenues from its marquee product ATBS due to stunted oil prices. VOL's clients' desire to keep truncated inventory levels in December also contributed to plummeting top line.. IBB volumes remained low; given our understanding, BASF - a major customer is facing challenges with Ibuprofen manufacturing. With just a handful of customers in the global...
Vinati Organics Ltd. has gained 42.48% in the last 6 Months
Vinati Organics Ltd.    
18 Mar 2020
1258.05
2.75%
buy
Geojit BNP Paribas
Vinati Organics Ltd (VOL) enjoys global leadership in two specialty chemicals, with market share of 70% in IBB (isobutyl benzene) and 80% in ATBS (2-Acrylamindo 2-Methylpropane Sulfonic Acid). We upgrade VOL to Hold as a we have a positive outlook on the VOL in the longer term given capacity expansion in ATBS, launch of new products and superior margin profile. Further, it is trading at 1 Year FWD P/E of 19x which is 35% discount to last 5 year average, which seems to be attractive. 9MFY20 Revenue de-grew by 5% YoY, on account of lower off-take...
Vinati Organics Ltd. is trading above all available SMAs