Buy Vinati Organics, target price Rs 2615: Motilal Oswal Financial Services

Motilal Oswal Financial Services has buy call on Vinati Organics with a target price of Rs 2615. The current market price of Vinati Organics is Rs 1968.9.

Vinati Organics, incorporated in the year 1989, is a Mid Cap company (having a market cap of Rs 19871.88 Crore) operating in Chemicals sector.

Vinati Organics key Products/Revenue Segments include Organic/Inorganic Heavy Chemicals, Scrap and Export Incentives for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 525.47 Crore, down -10.37 % from last quarter Total Income of Rs 586.27 Crore and up 37.00 % from last year same quarter Total Income of Rs 383.55 Crore. Company has reported net profit after tax of Rs 125.41 Crore in latest quarter.

The company’s top management includes Mr.Vinod Banwarilal Saraf, Ms.Vinati Saraf Mutreja, Ms.Mona M Bhide, Dr.(Mrs.)M Lakshmi Kantam, Mr.Adesh Kumar Gupta, Mr.J C Laddha, Ms.Viral Saraf Mittal, Mr.Jayesh Ashar. Company has M M Nissim & Co. LLP as its auditors. As on 31-12-2022, the company has a total of 10 Crore shares outstanding.

Investment Rationale
The demand outlook for the ATBS segment remains quite strong going forward for the remainder of FY23 as well as FY24. Veeral Organics (a wholly owned subsidiary of VO) is also set to commence production of MEHQ, Guaiacol, and Iso Amylene in 1HFY24, which should propel VO into the next leg of its growth story

Promoter/FII Holdings
Promoters held 74.06 per cent stake in the company as of 31-Dec-2022, while FIIs owned 4.81 per cent, DIIs 7.88 per cent.