Vinati Organics Upgraded To 'Buy' By HDFC Securities On Expansion, New Product Launch

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HDFC Securities Institutional Equities

We are upgrading Vinati Organics Ltd. from Reduce to Buy with target price of Rs 2,308. Projects worth Rs 8 billionn will be capitalised over the next one year.

Vinati Organics is expanding its ATBS capacity by a whopping 50% to 60 KTPA (~investment of Rs 3 billion).

With 60-65% market share in ATBS globally, it is the largest exporter to the US and European markets. Robust demand for ATBS and its derivates by diverse end-users in developed markets will fill the capacity. Veeral Organics Pvt Ltd., a subsidiary of Vinati Organics, is expected to commission its Rs 5 billion investment projects in Q2 FY26, introducing a new set of products.

Strong demand for antioxidants will enhance utilisation of the plant from below 50% to 90% by FY27. The next leg of capex is expected to be announced in coming quarters, with the company broadening its antioxidant portfolio.

ATBS expansion, new product launch, and expansion in butyl phenol and antioxidants will drive the company’s growth over FY26-28E.

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