Fine Organic Industries Ltd. share price target

soon, to be completed in 18 months post inception Fine Organic (FINEORG IN) reported consolidated revenue of Rs5.88bn, up 7% YoY but down 3% QoQ. Export markets witnessed healthy demand growth during the quarter, while domestic demand remained stable. Raw material and freight prices also remained steady. All manufacturing facilities operated at full capacity, except for the Patalganga (food-grade) plant, which is expected to be fully utilized by the end of FY26. In Q4FY25, FINEORG incorporated a...

Fine Organics Americas, a 100% subsidiary of Fine Organic (FINEORG), has acquired ~160 acres of land in South Carolina (USA) to set up a full-scale manufacturing facility.

Fine Organic (FINEORG IN) has been guiding that its facilities are fully utilized except Patalganga, primarily a food emulsifier plant. While erucamide remains the mainstay of the company as per our understanding, food emulsifier segment in developed markets offers a good opportunity for growth. Fine Organic has often showed its intent to foray into developed markets. Against the backdrop of 22% ROCE and 34% ROIC in past five years (excluding supernormal FY23) that the company has been making in India, it becomes...

Fine Organic (FINEORG IN) reported a consolidated revenue of Rs6bn, reflecting a growth of 11% YoY and 18% QoQ. This was driven by an 18% sequential increase in both domestic and export revenues. However, the sharp rise in vegetable oil prices, key raw materials for the company led to a significant YoY decline in gross margin to 19.7%, RM prices are expected to stabilize going forward. All the company's manufacturing plants are operating at full capacity, except for the Patalganga facility (food grade), which is currently in the ramp-up phase. Fine Organic is establishing new subsidiaries in...

Fine Organic Industries (FINEORG) reported revenue of INR5.8b in 4QFY25. EBITDA stood at INR1.1b (28% miss; down 18% YoY). EBITDAM contracted 660bp YoY to 18.8%, while gross margin dipped 640bp YoY to 37.2%.

The global oleochemicals market, valued at USD37.9b in CY23 and projected to reach USD65.4b by CY30, presents healthy opportunities for Fine Organic Industries (FINEORG).

Fine Organic Industries (FINEORG) reported higher-than-estimated EBITDA at
INR1.3b (-29% YoY) in 4QFY24. EBITDAM contracted 140bp YoY to 25.4%, while
gross margin improved 450bp YoY to 43.6%, primarily due to stable vegetable
oil prices.

Fine Organic Industries (FOIL) overall Q3FY22 performance came slightly above our estimates. The company reported revenue of INR 4,634mn with a 54.8% YoY increase, which was 8.6% above our estimate of INR 4,266mn. The revenue growth was driven by better realization supported by the price increase and strong volume growth. Export volume grew at a better pace with a contribution of 59%. However, domestic sales picked up at slower pace during the quarter due to the Covid19 (3rd wave) led restrictions. The company continued re-negotiating with its customers by accepting incremental business at cost-plus pricing to protect and recover from RM price volatility and higher freight costs. Despite 118bps contraction in the Gross margin, EBITDA margin managed to improve by 145bps to...

Fine Organic (FINEORG) reported a beat on our estimates, with the EBITDA margin recovering to 17% in 2QFY22 (after being subdued in the last three quarters). As per our understanding, the volatility in key vegetable oil prices has reduced in the recent quarter, with prices peaking around current levels. Customers have accepted the current environment of high prices. Lower volatility may result in better ability to pass on prices to consumers. FINEORG has long-standing relationships with its suppliers, which enables it to source raw materials at competitive prices. Based on the aforementioned and the...

Fine Organic Industries (FOIL) posted revenue of INR 3,576mn with a 49% YoY increase, which was 5.6% above our estimate of INR 3,387mn. The revenue growth was mainly driven by better realization supported by the price increase and partially due to new product introduction. Export volume grew at a better pace with a contribution of 62% compared to 55% in Q1FY21. However, domestic sales did not pick up and remained flat during the quarter due to the lockdown restrictions. FOIL has witnessed a increase in key raw material costs along with higher freight cost. Despite taking price increase by re -negotiation with some of its customers, continued increasing input cost severely impacted its gross margins by 673bps (YoY), which resulted in 732bps (YoY) contraction in EBITDA margin to 14.5%...

Demand outlook strong; margins to remain subdued Motilal Oswal values your support in the Asiamoney Brokers Poll 2021 for India Research, Sales, Corporate Access and...

Fine Organic Industries (FOIL) posted revenue of INR 3,229mn with a 30.6% YoY increase, which was 9.2% above our estimate of INR 2,958mn. The revenue growth was mainly driven by better realization supported by the price increase. FOIL has witnessed a sharp increase in key raw materials...

Fine Organic Industries Limited (FOIL) is the largest Oleo Additives player in India and a dominant player globally. FOIL has a strong moat in Oleochemicals including High Entry Barriers, High Customer Stickiness, High Return Ratios and Strong R&D; Capabilities. FOIL is in the midst of doubling its capacity, thus helping it to improve share of Cosmetics, Feed and Food additives which will be margin accretive. Given FOIL's strong earnings visibility from new capacities and consistent 30%+ return ratios, which reflect its robust business model, we believe it is truly deserving of a premium valuation other specialty chem peers. We thus value FOIL at INR 3,300 on 26x EV/EVITDA on FY23E which gives an upside of 15% from the CMP. At current valuation of 32x / 24x FY22E / FY23E EV/EBITDA. Key risks include RM Fluctuations, Forex Fluctuation and breach of IP....