Neutral on Fine Organic Industries, target price Rs 3135: Motilal Oswal

Motilal Oswal has neutral call on Fine Organic Industries Ltd. with a target price of Rs 3135. The current market price of Fine Organic Industries Ltd. is Rs 2888.65.

Time period given by analyst is one year when Fine Organic Industries Ltd. price can reach defined target. .
Fine Organic Industries Ltd., incorporated in the year 2002, is a Mid Cap company (having a market cap of Rs 8857.21 Crore) operating in Chemicals sector.


Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 329.23 Crore, up 8.07 % from last quarter Total Income of Rs 304.65 Crore and up 30.72 % from last year same quarter Total Income of Rs 251.85 Crore. Company reported net profit after tax of Rs 31.60 Crore in latest quarter.

Investment Rationale
FINEORG’s asset turnover is likely to remain stagnant around current levels of 1.4–1.5x. The stock is trading at 37x FY23E EPS of INR78 and 24x FY23E EV/EBITDA. The broekrage values the company at 40x FY23E EPS to arrive at TP of INR3,135.