Rossari Biotech Q4 Review - Inorganic Growth Is Key To Watch: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Rossari Biotech Ltd.’s Q4 FY21 Ebitda growth of 47% YoY to Rs 352 million came in line with our estimates; but helped by lower other expenses, while gross profit margin was under pressure on raw material price volatility.

Company remains confident of delivering strong revenue growth in FY22 on higher capacity and contribution from newer performance chemicals.

Raw material inflation pass-through should help improve gross profit margins (guided range: 32-38%).

The company has ambition for inorganic growth with strict criteria of debt-free company with more than 20% return on capital employed, which may not come cheap.

We are not sure on synergic benefit from the likely acquisition(s), and would evaluate them when announced.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.