Accumulate Vinati Organics; target of Rs 1799: CD Equisearch

CD Equisearch’s research report on Vinati Organics

Grand View Research, a global research company, posits that the global speciality chemicals market is expected to grow at 5.1% annually to $1.79 trillion by 2025 galvanized by the development of innovative and new products with burgeoning popularity of high value chemicals to play a vital role for driving the industry. Passage of free trade agreements is being widely advocated by various international chemical authorities. Such measures are expected to advance the manufacturing and trade of such products. A research analysis by Transparency Market Research, a global market information reports and services provider, in September 2018 reckons that the demand for ATBS in the global market is expected to rise owing to its wide and diverse range of application as a key input for enhanced oil recovery and water treatment. Other industries like textile, medical, personal care, coatings, and chemical industries are also exhibiting growing demand for this chemical. ATBS market in the Asia Pacific is expected to grow at a relatively higher rate compared to the global market, thanks to the growing economy and booming population with rising disposable income.

Outlook

VOL’s technical association with Institut Francais du Petrole (IFP), France, Saipem, Italy and National Chemical Laboratories (NCL), Pune assists it to maintain its market leadership and integrate its business model. Therefore, weighing odds, we advise buying the stock with a target of Rs 1799 (previous target: Rs 1209) based on 32x FY20e earnings over a period of 9-12 months.

For all recommendations report, click here

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First Published on Mar 29, 2019 04:26 pm

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