Buy Vinati Organics; target of Rs 2300: ICICI Direct

ICICI Direct is bullish on Vinati Organics has recommended buy rating on the stock with a target price of Rs 2300 in its research report dated August 02, 2021.

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ICICI Direct’s research report on Vinati Organics

Vinati Organics is a leading manufacturer of specialty chemical and organic intermediaries with global market leadership in its two key products- 2- Acrylamido 2 Methylpropane Sulphonic Acid (ATBS) and Isobutyl Benzene (IBB). Starting with IBB and subsequent forays into IB, ATBS, Butyl phenols, the company is now moving towards antioxidants. The company has two manufacturing facilities at Mahad and Lote In terms of revenue contribution, ATBS constitutes ~40-50% of overall revenue followed by IBB of 20-30% while the rest is from others segments such as IB, Butyl phenols and derivatives

Outlook

We retain BUY rating on the back of better growth outlook from ATBS and newer products such as Butyl phenols and antioxidant We value Vinati Organics at 50x P/E FY23E EPS to arrive at a revised target price of Rs 2300/share (earlier Rs 2220/share).

For all recommendations report, click here

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