Privi Speciality Chemicals Gets Motilal Oswal's 'Buy' As It Initiates Coverage; Sees 30% Upside Potential

Privi is one of only four global players and the only Asian firm with the expertise of efficiently utilizing CST, highlighting its leadership and cost advantage in aroma chemicals. Privi is a global leader in pine-based aroma chemicals, supported by backward integration and its CY16-commissioned CST refinery, the world’s largest at a single site..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..Motilal Oswal Report.Over the last three years, Privi Speciality Chemicals Ltd. rerated from ~31.6x P/E (average of the last three years; one-year forward) to ~35.5x as of Nov’25, fueled by strong cash flow generation (Rs 2.8 billion in FY25), consistent performance (24% PAT CAGR over FY22-25), and improved RoE (18% in FY25). The company has reported a CAGR of 14%/32%/24% in revenue /Ebitda /adjusted PAT over FY22-25. We expect Privi to deliver a CAGR of 27%/34%/46% in revenue/Ebitda/adjusted PAT over FY25 to FY28.Privi currently trades at 39x/32X/22x FY26E/FY27E/FY28E EPS with ROE/ROCE of 25%/18% in FY28E. We value Privi at 28x FY28E (~10% discount to three-year average) EPS of Rs 141 to arrive at our target price of Rs 3,960. We initiate coverage with a Buy rating on the stock..Privi is not only scaling up its core operations—through capacity additions, product diversification, and deeper engagement with existing customers—but also strategically entering the green chemistry domain. This move is aimed at strengthening its long-term growth trajectory, tapping into environmentally sustainable demand pockets and broadening its client base across end-use industries. The aroma chemicals market continues to gain traction, supported by robust demand for home fragrances, consistent growth in cosmetics, personal care, bakery, and confectionery segments amid rising consumer focus on safety and ingredient transparency, and a steady increase in disposable incomes in key emerging economies.Further, given the diverse applications of green chemistry products, company is expected to address a larger wallet share from its existing customers (TAM of new products is ~$386 million), presenting a significant growth opportunity for Privi. The merger with Privi Fine Sciences is expected to further strengthen the company’s long-term growth prospects..Click on the attachment to read the full report:.Motilal Oswal Maintains Cautious Stance On NTPC, Reiterates 'Neutral' — Here's Why.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.

Privi Speciality Chemicals Gets Motilal Oswal's 'Buy' As It Initiates Coverage; Sees 30% Upside Potential

Motilal Oswal initiates coverage on Privi with a 'Buy' rating and expects it to deliver a CAGR of 27%/34%/46% in revenue/Ebitda/adjusted PAT over FY25 to FY28.

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