Centrum is bullish on Visaka Industries has recommended buy rating on the stock with a target price of Rs 950 in its research report dated September 26, 2018.
Centrum's research report on Visaka Industries
We hosted Visaka Industries’ (VIL) management for a non-deal roadshow. The management guided that good demand across all three business segments (ACS, CBP and Yarn) has accelerated growth outlook for FY19. However, the INR depreciation during Q2FY19 and rising diesel prices will drag down ACS as well as total margin in Q2FY19. Management expects to pass on this cost increase during H2FY19, through price increase (aided by robust demand in ACS). VIL’s innovating and patented product – ATUM – is expected to go on sale from Q3FY19.
Outlook
We remain positive on VIL owing to its strong positioning across all three business segments and reiterate BUY with an unchanged TP of Rs950.
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