Long-term guidance intact; destocking nearly over

Company
11 Mar 2024
5 Min read 
  • Vinati Organics (VO) reported better-than-expected 3QFY24 revenue due to strong sales in IBB and customized products.
  •  Gross margin and EBITDAM declined YoY, but management expects demand to normalize in the coming months.
  •  VO has not lost market share in ATBS and expects strong growth in ATBS sales in FY25.
  •  The company has made inroads in the market despite headwinds and has a sustainable EBITDAM of 25-27%.
  •  VO is set to become the largest double-integrated manufacturer of AOs in India, with capacity expansion plans.
  •  Motilal Oswal research values the stock at INR1,900 and reiterates a BUY rating.
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