Valiant Organics Ltd. share price target

PAP: Valiant is currently producing PAP in small quantities (~100MT/m) and is working towards continuous PAP production as the same would result in reduction in overheads. Going forward, the management highlighted that they should be able...

INDIA l Institutional Research l Chemicals l 01st November 2021 Valiant Organics l BUY l TP: 1,975 Robust revenue growth, margins play spoilt sport We maintain a BUY rating with a revised TP of Rs1,975 (earlier Rs2,100); revision is largely on account of increase in RMAT costs, which has led to downgrade in earnings for FY22E/FY23E. The company posted impressive revenue growth of 64% YoY and 12% QoQ driven by improved realisation rates and increasing utilisation of enhanced capacities; we believe that this strong revenue growth should sustain. However, high RMAT and freight...

INDIA l Institutional Research l Chemicals l 18th August 2021 Valiant Organics l BUY l TP: 2,100 Strong revenue growth, margins impacted We maintain BUY rating and TP of Rs2,100 with no revisions in our FY22/FY23 estimates as we expect revenue and margins to improve in subsequent quarters. Valiant's revenue growth is in line with our expectations as the company posted revenue growth of 65.5% YoY and 4.3% QoQ. Gross and EBITDA margins witnessed contraction due to non-favorable raw material prices coupled with the loss of production days at the Jhagadia plant. Going...

We initiate coverage on Valiant Organics, a chemicals manufacturer having a modest but niche product portfolio, with a BUY and TP of Rs2,100. Valiant's proven expertise in niche chemistries, agile manufacturing and innovative product selection strategy have helped it stand out in a congested chemicals space. Its remarkably large market shares in small but critical products undergirds its indispensability to clients. Our conviction is further bolstered by its sustainably high margins, superior return ratios and low leverage, and at the...