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Home >> Country >> India >> Company
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Latest Reports
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| Date |
Description |
Country |
Analyst |
Download |
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| 13-Feb-2024 |
Vinati Organics - Getting ready for a strong structural growth; Remain Neutral with TP Rs 1750 |
India |
Surya Patra |
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| 21-May-2023 |
Vinati Organics Ltd - Low ATBS demand and weak product mix hurt FY24; Downgrade to NEUTRAL with TP of Rs 1900 |
India |
Surya Patra |
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| 09-Nov-2022 |
Vinati Organics Ltd - Visible growth as well as cost concerns are priced-in; Maintain NEUTRAL rating with TP Rs 2000 |
India |
Surya Patra |
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| 02-Aug-2021 |
Vinati Organics Ltd - Cost challenges visible in the near-term: Maintain Neutral with TP Rs 1700 |
India |
Surya Patra |
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| 04-Feb-2021 |
Vinati Organics Ltd (VO IN) - New integrated projects power earnings outlook ; Maintain Neutral with TP Rs1300 |
India |
Surya Patra |
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| 01-Feb-2020 |
Top takeaways from Q3FY20
? VO reported sales of Rs 2.38bn (-21% yoy), a miss of 6% to our estimates of Rs 2.54bn. Export incentive of Rs 44mn is regrouped in sales from other income in Q3. On a like-to-like basis, the sales missed our estimates by 8%. The sales under performance were largely led by softening price as well as demand scenario in key products of ATBS and IBB (caused by continuing challenge at Chinese customers’ end).
? Given the weakness in key products ATBS/IBB, the EBITDA margins at 34.8% surprised us negatively by 120bps, resulting in 9% miss in EBITDA at Rs 830mn (-22% yoy).
? Despite higher other income (doubled at Rs 154mn) and new tax amendments (25% vs 33% earlier), the PAT reported 6% yoy fall to Rs 665mn, a miss of 6% to our estimates.
Management call takeaways:
? VO’s lead product ATBS declined double digit percentage in Q3 primarily due to weak demand from Oil & gas segment (given the softening outlook of crude oil/gas and that contributes about 20% of overall demand) and peak revenue base of last year that was boosted by the exit of Lubrizol from the product.
? Currently, VO operates at 90% utilisation of existing ATBS capacity and simultaneously has expanded capacity to 40,000tnpa from current 26,000tnpa. Given the weak demand outlook, the expanded ATBS capacity is likely to see delayed commissioning in FY21 (vs. Q2).
? Although the IBB sales picked up sequentially, it witnessed a yoy decline due to weak demand from its leading global partner as they are in their in the manufacturing restructuring mode. So the weakness in IBB seems temporary.
? VO has just commissioned its new project to manufacture butyl phenols with couple of months delay in Q3 (with a capex of around Rs 2.4bn). Hence, there was hardly any sales contribution from the project in the quarter but it added some incremental cost.
? The butyl phenol plant has an annual capacity of 39000 TPA to manufacture Para-Tertiary Butyl Phenol, Ortho-Tertiary Butyl Phenol, 2,4-Di Tertiary Butyl Phenol and 2,6-Di Tertiary Butyl Phenol. VO guides to generate optimal sales of Rs 4bn in at full utilization of the project. We estimate incremental sales of Rs 510mn in FY20 and Rs 2.13bn in FY21
? VO has already expanded its IB capacity to 30,000 TPA from 12,000 TPA in FY19, which will backward integrate the ATBS expansion and its upcoming project of butyl phenols.
? VO guides for flat sales performance in FY20.
Outlook and valuation: VO’s Q3 earnings missed our estimates by 6% but it has brought in weak demand outlook for its lead product in the near-term. Going ahead, factoring the visible weakness in ATBS demand outlook, delayed commissioning of Butyl Phenol project and most likely weakening product mix, we cut our earnings estimates for FY20/21/22 by 15%/18%/15% (to Rs60.8/72.6/88). According we value VO at Rs.2000 (implying potential downside of 10% from CMP. Hence we downgrade our rating to Neutral from Buy with TP of Rs2000 |
India |
Surya Patra |
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| 13-Nov-2019 |
Vinati Organics Ltd: Core operating efficiency remains robust : Maintain BUY with TP Rs 2300 |
India |
Surya Patra |
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| 31-Jul-2019 |
Vinati Organics Ltd (VO IN) - Expansions and new project to drive earnings growth; Maintain BUY with TP Rs 2000 |
India |
Surya Patra |
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| 13-May-2019 |
Vinati Organics Ltd (VO IN) - Earnings momentum to continue ahead despite high base; BUY TP Rs 1900 |
India |
Surya Patra |
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| 29-Oct-2018 |
Vinati Organics Ltd (VO IN) - Earnings momentum to remain robust; BUY with TP of Rs 1400 |
India |
Surya Patra |
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| 07-Aug-2018 |
Vinati Organics Ltd (VO IN) - Strong Q1; Growth visibility intact; BUY with TP Rs 1300 |
India |
Surya Patra |
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| 15-May-2017 |
Vinati Organics Ltd (VO IN) - Ramp up in new products drives; NEUTRAL with TP of Rs 800 |
India |
Surya Patra |
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| 06-Feb-2017 |
Vinati Organics Ltd (VO IN) - On a steady growth path; Downgrade to NEUTRAL with TP Rs 750 |
India |
Surya Patra |
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| 01-Nov-2016 |
Vinati Organics Ltd (VO IN) - New projects add long-term growth visibility; Re-iterate BUY with TP of Rs 650 |
India |
Surya Patra |
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| 01-Aug-2016 |
Vinati Organics Ltd (VO IN) - Strong operating performance to re-rate; Maintain BUY with raised TP of Rs 600: |
India |
Surya Patra |
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| 16-May-2016 |
Vinati Organics (VO IN) -Growth led by ATBS base recovery; Retain BUY: |
India |
Surya Patra |
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