Arihant Capital has given Buy recommendation for Vishnu Chemicals with a target price of Rs. 1892 in its research report issued on Feb 18, 2022
Arihant Capital’s research report on Vishnu Chemicals
Vishnu Chemical Ltd. is a leading manufacturer of chromium and barium chemicals. It delivered robust earnings in the quarter ending December 2021. The company is at the end of its capital expenditure cycle which includes backward integration in its chromium facility and expansion of its barium plant capacity. Both the operations underwent trial run in Q3FY22 and will get commercialized by Q4FY22. The output is expected to be reflected in the financials of the company from Q4FY22. In FY21, chromium vertical contributed about 85% of the consolidated revenues, while the remaining 15% was attributed to the barium segment.
Factoring in its sturdy growth going ahead, we value the company at a P/E multiple of 15x its FY24E EPS of INR 126.1 and revise our target price upwards to INR 1,892 per share. Accordingly, we reiterate our BUY rating on the shares of Vishnu Chemicals Ltd.
At 17:30 Vishnu Chemicals was quoting at Rs 1,253.30, down Rs 59.55, or 4.54 percent.
It has touched an intraday high of Rs 1,340.00 and an intraday low of Rs 1,247.25.
It was trading with volumes of 1,083 shares, compared to its thirty day average of 2,060 shares, a decrease of -47.43 percent.
In the previous trading session, the share closed down 2.24 percent or Rs 30.05 at Rs 1,312.85.
The share touched its 52-week high Rs 1,399.30 and 52-week low Rs 166.50 on 21 February, 2022 and 26 February, 2021, respectively.
Currently, it is trading 9.39 percent below its 52-week high and 661.53 percent above its 52-week low.
Market capitalisation stands at Rs 1,497.19 crore.