HDFC Securities is bullish on Vinati Organics has recommended buy rating on the stock with a target price of Rs 1700 in its research report dated October 29, 2018.
HDFC Securities' research report on Vinati Organics
Vinati Organics (VO) reported a strong set of numbers with Sales/EBITDA/PAT coming in at Rs 2.53bn/Rs 9.5bn/Rs 650mn growing at 57.3/107.3/123.1% respectively. VO reported the highest ever quarterly EBITDA margin of 37.7% (expansion of 9.0 percentage points YoY). Vinati Organics has been commanding a premium in valuations due to an impeccable product selection history, best in class return ratios (ROE/RoIC for FY19 expected at 28.0/25.6%) and a strong technocrat promoter backing.
Outlook
We are valuing Vinati Organics 25xSept’20 EPS with a revised target price of Rs 1,700. We upgrade our rating to Buy.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Read More
