Motilal Oswal Initiates Coverage on Vinati Organics with a Buy Rating, Target Price of Rs 1700.

Vinati Organics Reports Steady Operating Performance

Vinati Organics (VO) has reported a steady operating performance, with EBITDA at INR1.8 billion, remaining flat year-over-year (est. INR1.6 billion). Notably, the company's EBITDA margin has expanded 170 basis points year-over-year, despite fluctuations in raw material prices, logistics costs, and supply chain issues.

The company's performance is expected to continue on a steady trajectory. For the Acrylamide Tertiary-Butyl Sulfonic Acid (ATBS) segment, revenue growth is expected to be driven by volume growth, the ramp-up of Phase I expansion, and the commercialization of Phase II in October 2026. This is expected to contribute positively to the company's overall revenue growth.

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The phenol (BP) segment is expected to witness improving demand conditions, while the Isobutyl Benzene (IBB) segment is likely to post double-digit growth. Based on these projections, Motilal Oswal's research report has broadly maintained its earnings estimates for FY27/FY28 and values VO at 29x FY28E EPS, arriving at a target price of INR1,700. The report reiterates a BUY rating on VO.