Buy Vinati Organics, target price Rs 2220: Motilal Oswal

Motilal Oswal has buy call on Vinati Organics with a target price of Rs 2220. The current market price of Vinati Organics is Rs 1945.05. Time period given by analyst is one year when Vinati Organics Ltd. price can reach defined target.

Vinati Organics Ltd., incorporated in the year 1989, is a Mid Cap company (having a market cap of Rs 20000.87 Crore) operating in Chemicals sector.

Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 403.95 Crore, unchanged .00 % from last quarter. Company reported net profit after tax of Rs 80.92 Crore in latest quarter.


Investment Rationale
The stock is trading at 43x FY23E EPS and 31x FY23E EV/EBITDA, with attractive return ratios of 24–25% (+600bps v/s FY21). It has a fixed asset turnover of 1.3x, which is likely to double over the next three years.

Promoter/FII Holdings
Promoters held 74.1 per cent stake in the company as of June 30, 2021, while FIIs held 4.4 per cent, DIIs 6.8 per cent and public and others 14.7 per cent.