Vinati Organics Q3 Results Review - Recovery Still Sometime Away: Nirmal Bang

Nirmal Bang Report

Vinati Organics Ltd.'s Q3 FY24 Ebitda came in ~7% below our estimate led by continued destocking in ATBS and elevated pricing pressure across the portfolio.

The management expects recovery in ATBS starting from April 2024 and has guided for ~30% YoY growth in FY25. ATBS expansion project, after a delay due to market conditions, is expected to commission by December 2024.

While newly commissioned projects present a promising case for earnings acceleration, demand recovery and competitive intensity in AOs, MEHQ, Anisole, etc. remains the key. Also, incremental return on capital employed could be lower than the base portfolio, in our view.

Maintain Sell with a revised target price of Rs 1,500 (30 times earning price December 25E earnings).

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit 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 NDTV Profit.

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