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    Buy Vinati Organics, target price Rs 2220: ICICI Direct

    Synopsis

    Vinati Organics Ltd., incorporated in the year 1989, is a Mid Cap company (having a market cap of Rs 19685.85 Crore) operating in Chemicals sector.

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    Promoters held 74.1 per cent stake in the company as of March 31, 2021, while FIIs held 3.5 per cent, DIIs 7.3 per cent and public and others 15.2 per cent.
    ICICI Direct has buy call on Vinati Organics with a target price of Rs 2220. The current market price of Vinati Organics Ltd. is Rs 1922.35. Time period given by analyst is one year when Vinati Organics Ltd. price can reach defined target.
    Vinati Organics Ltd., incorporated in the year 1989, is a Mid Cap company (having a market cap of Rs 19685.85 Crore) operating in Chemicals sector.

    Financials
    For the quarter ended 31-03-2021, the company reported a Standalone Total Income of Rs 286.34 Crore, up 23.02 % from last quarter Total Income of Rs 232.76 Crore and up 9.47 % from last year same quarter Total Income of Rs 261.56 Crore. Company reported net profit after tax of Rs 70.86 Crore in latest quarter.

    Investment Rationale
    Better demand outlook of ATBS and IBB are likely to augur well for overall revenue growth, which is expected to grow 51.2% YoY to Rs 350 crore. OPM is likely to remain at 39.4% (down 260 bps YoY) translating into EBITDA of Rs 138 crore (up 42% YoY). PAT is expected to remain at Rs 100 crore (up 38.9% YoY). Key Monitorables: Timeline for Veeral Additives consolidation and progress of Butyl phenol plant utilisation.

    Promoter/FII Holdings
    Promoters held 74.1 per cent stake in the company as of March 31, 2021, while FIIs held 3.5 per cent, DIIs 7.3 per cent and public and others 15.2 per cent.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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