This speciality chemical firm stock price may jump by Rs 400 apiece - Why Street bullish on it?
Vinati Organics reported a jump of almost 51 per cent in quarterly net profit to Rs 125 crore, driven by a 38 per cent increase in sales to Rs 509 crore. The Vinati Organics stock rose as much as 1.7 per cent after the earnings announcement.
Vinati Organics shares extended gains to a second straight day on Tuesday, a day after the specialty chemical makerreported a jump of 51 per cent in net profit for the quarter ended December 2022 to Rs 125 crore compared with the corresponding period a year ago. The Vinati Organics stock gained nearly two per cent to Rs 1,901.9 apiece on BSE.
The spike in net profit was driven by a 38 per cent increase in sales to Rs 509 crore compared with the year-ago period, according to a regulatory filing.
Nirmal Bang maintained a 'buy' rating on the Vinati Organics stock after the specialty chemical company's earnings announcement with a target price of Rs 2,300 per share, which implies a potential upside of 23 per cent in from its closing price on Monday.
“While the margin profile might look tight for the company in the near future, the addition of ROCE-accretive projects will ensure efficient capital allocation strategy,” the brokerage said.
Vinati Organics shares have lost about two per cent of their value in the last one year, a period in which the Sensex headline index has risen five per cent.
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