Fine Organic Q4 Results Review - Strong Exports Recovery While Domestic Demand Resilient: Dolat Capital

"NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.Fine Organic Industries Ltd.’s Q4 FY24 revenue/Ebitda/profit after tax came at Rs 5.5 billion/Rs 1.4 billion/ Rs 1.1 billion and beat estimates by 10%/31%/35%, mainly due to stronger than expected recovery in exports (+38% QoQ), higher spreads and operating leverage benefits. Q4/FY24 exports revenue contribution stood at 55%/ 52%. Fine Organic guided ambitious expansion plans, which could even involve raising debt (i.e. over and above cash on books of Rs 10.5 billion, which in itself is 1.7 times of current gross block). It is-evaluating setting up of a considerable capacity outside India; trying to expand its product range through acquisitions; and waiting for allotment letter from government authorities in Maharashtra SEZ (expected shortly) to expand existing and new products..We believe that capacity headroom available (albeit limited) will cater to recovery in export volumes, while upcoming SEZ expansion will aid long term growth needs. Further, strong net cash balance sheet and healthy OCF of Rs 8 billion over FY25-26E will enable funding the capex programme. We increase our FY25/26E EPS estimates by 4% and reiterate ‘Buy’ rating with revised target price of Rs 5450 (34 times FY26 earnings per share) from earlier Rs 5250..Click on the attachment to read the full report:.Aarti Industries Q4 Results: Profit Falls, But In Line With Estimates.DISCLAIMERThis 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."

Fine Organic Q4 Results Review - Strong Exports Recovery While Domestic Demand Resilient: Dolat Capital

Gradual recovery in export volumes and new product launches to ensure better profitability over FY25-26E, led by improvement in capacity utilization and product mix

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Fine Organic Q4 Results Review - Strong Exports Recovery While Domestic Demand Resilient: Dolat Capital

Gradual recovery in export volumes and new product launches to ensure better profitability over FY25-26E, led by improvement in capacity utilization and product mix

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