KR Choksey has given Buy recommendation for Vinati Organics with a target price of Rs. 2349 in its research report issued on May 17, 2022

KR Choksey’s research report on Vinati Organics

In Q4FY22, VOL’s consolidated revenue grew by 73.73% YoY and by 31.77% QoQ to INR 4,861 Mn. For FY22 revenue was up by 69.29% to INR 16,155. Overall demand growth was led by ATBS segment. EBITDA has seen a growth of 40.06% YoY basis and 49.57% QoQ to INR 1,388 Mn, while EBITDA margins slipped by 686 bps YoY but improved sharply by 340 bps QoQ to 28.55% in Q4FY22. For FY22 EBITDA was up by 24.44% at INR 4,340. PAT has seen a jump of 42.80% YoY/ 21.51% QoQ to INR 1,011 Mn. The PAT margins contracted by 451 bps YoY and 176 bps QoQ to 20.80% in Q4FY22. For FY22 PAT came at 3,466 up 28.70%. The company has declared a final dividend of INR 6.5 per share.

Outlook

We continue to remain optimistic with our ‘BUY’ recommendation and apply P/E multiple of 43x to its FY24E earnings, with same target price of INR 2,349 per share.

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