Vinati Organics Ltd. share price target

Sales/EBITDA/PAT were largely flat. Sales were lower than our estimate of ` 3.19bn, while EBITDA and PAT were largely in-line (D.est: EBITDA/PAT: ` 1.18bn/785mn). VO reported a strong gross margin expansion of 720 bps YoY and 240 bps QoQ at 57.7%, bulk of the expansion in margins can be attributed to sustained ATBS prices. VO reported the highest ever EBITDA margin of 41.3% up by 670 bps YoY and 95 bps QoQ. Guidance moderated amidst delays in commissioning The management has lowered the Sales and PAT guidance to 15.0% YoY in...

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). Revenue and PAT grew by 39% & 59% YoY led by strong volume growth in ATBS and better operating performance. EBITDA grew by 84% YoY while margins improved by 980bps YoY...

Strong traction in ATBS will continue owing to robust demand and shortage of global capacity. VO is expanding its ATBS capacity by ~46% to reap the benefit of the situation. Besides, the company will add Butylated Phenols to its product basket. This too, will drive volume growth in FY20/21. VO has been commanding a premium in valuations due to an impeccable history of product selection, best in class return ratios (ROE and RoIC for FY20/21E will be 27.9/26.5 and 26.1/28.6%). Therefore, we value Vinati Organics at 25x Mar'21 EPS with a target price of Rs 2,034/share. We maintain BUY on Vinati Organics (VO) after beat on our estimates. Our target is Rs 2,034sh (25x Mar-21E standalone EPS).

of firm realizations from new clients and robust volumes. Its pricing policy also helped as VOL charges arges a fixed margin from its clients which help it to methodically transfer the higher costs of fluctuating raw materials to customers during volatile crude oil price scenarios. Margins for 9MFY19 also rose dramatically by 750 bps to 35%...

Vinati Organics Ltd (VOL) enjoys global leadership in two speciality chemicals, with market share of 70% in IBB and 80% in ATBS. Revenue and PAT grew by 63% & 123% YoY led by strong volume growth in ATBS and demand uptick from other segments. EBITDA margins improved by 830bps YoY to 35.1% due to strong volume growth and higher contribution from ATBs. We expect the current growth momentum to continue led by pick-up in demand from IBB and customised products....

We are valuing Vinati Organics 25xDec'20 EPS with a revised target price of Rs 1,840. Vinati Organics (VO) reported another strong quarter with Sales/EBITDA/PAT coming in at Rs 3.03bn/1.06bn/ 707mn growing at 63.2/113.6/122.8% YoY respectively. VOs planned expansion in ATBS and Butylated Phenols is going as per schedule

EBITDA margins improved by 900bps YoY to 37.7% due to better product mix and benefits from scale. Limited competition in ATBS, pick-up in demand from IBB and customised products, we expect current growth momentum to continue. Robust demand outlook for ATBS and launch of new products in next 12 years has significantly improved future outlook. We upgrade our earnings estimates by 18% & 16% for FY19 & FY20E to factor in impressive earnings in Q2FY19. Given strong earnings outlook and RoE of 26% (last 5yrs), we maintain...

We are valuing Vinati Organics 25xSept'20 EPS with a revised target price of Rs 1,700. We upgrade our rating to Buy. Vinati Organics (VO) reported a strong set of numbers with Sales/EBITDA/PAT coming in at Rs 2.53bn/Rs 9.5bn/Rs 650mn growing at 57.3/107.3/123.1% respectively. VO reported the highest ever quarterly EBITDA margin of 37.7% (expansion of 9.0 percentage points YoY).