Specialty Chemical manufacturer Vinati Organics shares were trading at Rs. 1878.50 apiece at 11:20 AM on Friday. This gives the company a market capitalization of Rs. 19,552 crore. Furthermore, it is one of the few large companies having a promoter shareholding of as much as 74%.
Vinati Organics Ltd. is a renowned producer of specialty chemicals and organic intermediaries with an international presence in more than 35 nations around the globe. It was started in 1989 and has emerged as one of the preferred suppliers of the biggest industrial and chemical companies in the US, Europe and Asia.
Domestic brokerage firm Motilal Oswal Financial Services is particularly bullish on the shares of Vinati Organics. Its analysts see it as a strong performer in the coming months.
The analysts are of the opinion that the demand for ATBS will likely stay strong in the financial year 2023-24. The company ranks first in the manufacturing of ATBS and IBB with a market share of over 65% for both products.
The management has earmarked a huge CAPEX of Rs 600 crore for the next two years. A significant portion of it will go towards increasing the production capacity of ATBS to 60,000 MT.
Furthermore, the company’s consolidated top line will likely rise more as its wholly-owned subsidiary Veeral Organics is all set to start manufacturing MEHQ, Guaiacol, and IsoAmylene in 1HFY24E.
Motilal Oswal has given a ‘buy’ call on the shares of Vinati Organics with a target price of Rs 2,740 per share. This translates into an upside of an impressive 45.86% for the investors.
Written by Vikalp Mishra
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