Rossari Biotech Ltd. share price target

Rossari Biotech’s Q4FY22 standalone EBITDA dipped 20% YoY to Rs275mn, and standalone HPPC revenues fell 13% QoQ – which were unimpressive. However, the performance of acquired companies was steady, and this helped consolidated EBITDA growth of 49% YoY to Rs523mn.

Input cost inflation continues to weigh on margins

Robust organic growth; acquisitions open new avenues

Unitop acquisition to foster synergistic growth

Rossari Biotech (Rossari) is a key specialty chemicals manufacturer operating in home and personal care, textiles, and animal health and nutrition segments in India.

A niche playermargin expansion support rich valuation Rossari Biotech Limited (RB) is one of the leading manufacturer of specialty chemicals in India with a diversified product profile of 2,030 products. Also largest manufacturer of textile specialty chemicals in India. Its main product categories include; (a) Home, personal and performance chemicals, (b) textile specialty chemicals and (c) animal health and nutritional products. RB has...

Company was initially incorporated as Rossari Labtech on March 6, 2003, as a partnership firm however subsequently was changed into company and named Rossari Biotech Ltd on 5th December 2003. Rossari Biotech is one of the leading specialty chemicals manufacturing companies in India providing customized solutions to requirements of their customers primarily in the FMCG, apparel, poultry and animal feed industries through company's diversified product portfolio comprising home, personal care and performance chemicals; textile specialty chemicals and animal health and nutrition products. The company operates in India as well as in 17 foreign countries including Vietnam, Bangladesh and Mauritius etc. The company...

Rossari Biotech Ltd. is one of the leading specialty chemicals manufacturing companies in India based on sales for FY19 providing customized solutions to specific industrial and production requirements of their customers primarily in the FMCG, apparel, poultry and animal feed industries through company's diversified product portfolio comprising home, personal care and performance chemicals; textile specialty chemicals; and animal health and nutrition products. The company operates in India as well as in 17 foreign countries including Vietnam, Bangladesh and Mauritius. According to the F&S; Report, as on September 30, 2019, the company is one of the largest manufacturer of textile specialty chemicals in India providing textile specialty chemicals in a sustainable, eco-friendly yet competitive manner. Rossari's business is organized in three main product categories (i) home, personal care and performance...

Rossari Biotech Ltd. Issue Open: July 13 - July 15, 2020, Price Band: Rs. Rs. 423 - 425, Issue Size: 11,676,471 eq shares (Fresh issue 1,176,471* + Offer for sale of 10,500,000 eq sh)

Outlook & Valuation: At the upper end of the price band, Rossari demands PE multiple of 32.1x F.Y.20 fully diluted EPS. None of the listed chemical companies has the same business as Rossari. Its specialty chemical peers such as Galaxy Surfactants, Fine Organics, Aarti industries, Atul and Vinati Organics are currently trading at F.Y.2020 P/E