Arihant Capital has given Buy recommendation for Vishnu Chemicals with a target price of Rs. 1513 in its research report issued on Oct 21, 2021

Arihant Capital’s research report on Vishnu Chemicals

Vishnu Chemicals Limited is in the business of manufacturing, marketing and export of chromium chemicals and other specialty chemicals. The Company’s principal product/services include Basic Chromium Sulphate, Sodium Dichromate and Barium Carbonate. Its geographical segments include Domestic and International markets. Its manufacturing plants are located in Telangana, Andhra Pradesh and Chhattisgarh. It has an annual capacity of producing 70,000 MT of Sodium Dichromate and the facilities have high degree of flexibility to switch between products to meet client demand accordingly. We initiate coverage on the stock given its leadership position in its operating segment and improvement in financials post its completion of the capex program.


The company is expected to deliver robust financial performance post completion of its capex projects in Q4FY22. For FY22, revenue is expected to reach ~ INR 860 Cr with operating margins of 14.5% and PAT of ~ INR 57 Cr. Similarly, FY23 will see the full effect of the company’s future plans and revenue projected at ~INR 995 Cr with increase in operating margins to 18.8% and PAT of ~INR 101 Cr. Factoring in its sinewy growth, we value the company at a P/E multiple of 14x its FY24E EPS of INR 108.1 and arrive at a Target Price of INR 1,513 per share. Accordingly, we recommend a BUY rating on the shares of Vishnu Chemicals Ltd.

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