Chemical stock with revenue guidance of more than 20% to keep on your radar Trade Brains Trade Brains

A leading chemical stock is drawing attention as it sets ambitious goals for the coming years. The company aims to achieve a 20 percent growth in its top-line revenue and a 27 percent increase in EBITDA. With a strong growth strategy in place, it is positioning itself for significant expansion in the chemical sector, attracting investor interest and signaling a promising outlook.

Price Action

During Tuesday’s trading session, the share price of Vinati Organics Ltd reached an intra-day high of Rs.1,624.95 per share, rising 2.2 percent from its previous close of Rs.1,589.25 per share. However, later the stock declined before closing at Rs.1,577.55 each. Over the past five years, the shares have delivered over 90 percent returns.

Future Outlook

Vinati Organics is expecting strong demand for its products, particularly for ATBS, and anticipates 15-20 percent growth in both topline and EBITDA over the next two years. The company is maintaining stable pricing while targeting an EBITDA margin of 26-27 percent. Despite minimal impact from U.S. tariffs, the company has decided against setting up a manufacturing subsidiary in the U.S. to avoid the risk of higher duties, with the blended tariff on exports to the U.S. currently at 7.5 percent.

The industry is also pushing for anti-dumping duties on Chinese antioxidants, with a proposal for a 20 percent duty. While the tariffs do not significantly impact Vinati Organics, the company continues to explore ways to leverage its strong market position. As demand remains robust, the company is focused on expanding its reach and sustaining its growth momentum in the coming years.

Manufacturing Facilities and Developments

Vinati Organics operates two advanced manufacturing plants in Maharashtra, India, located in Mahad (Raigad) and Lote Parashuram (Ratnagiri). Both facilities are certified with ISO 14001:2015, ISO 45001:2018, and OHSAS 18001:2007, reflecting the company’s commitment to maintaining high standards in quality, environmental management, and health & safety. Additionally, Vinati Organics exports its products to more than 35 countries across regions including the US, South America, Europe, and Asia.

Also read: Stock in focus after bagging an order worth ₹ 75.43 Cr for Water Pumping Systems

Financial Performance

Vinati Organics Ltd reported remarkable financial growth for Q3 FY25, with revenue soaring to Rs.522 crore, reflecting an increase of 17 percent compared to Rs.448 crore in Q3 FY24. Furthermore, the company’s Profit After Tax (PAT) surged by 25 percent, rising to Rs.96 crore from Rs.77 crore in the similar time period. 

Ratio Analysis

The company has a Return on Capital Employed (ROCE) of 18.82 percent and a Return on Equity (ROE) of 14.34 percent. Its Price-to-Earnings (P/E) ratio stands at 43.25, lower than the industry average of 53.28. Furthermore, the company maintains a current ratio of 3.51, a debt-to-equity ratio of nil, and an Earnings Per Share (EPS) of Rs.37.27. 

Business Overview

Vinati Organics Ltd. was founded in 1989 and is headquartered in Mumbai, Maharashtra. The company operates within the chemical manufacturing sector, specializing in the production of specialty chemicals and organic intermediates. Renowned as the world’s largest producer of Isobutyl Benzene (IBB) and 2-Acrylamido 2 Methylpropane Sulfonic Acid (ATBS), Vinati Organics also supplies a range of specialty products, such as methyl 4 tertiary butyl benzoate, to industries including pharmaceuticals, cosmetics, and personal care.

Written by – Siddesh S Raskar

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Chemical stock with revenue guidance of more than 20% to keep on your radar appeared first on Trade Brains.

A leading chemical stock is drawing attention as it sets ambitious goals for the coming years. The company aims to achieve a 20 percent growth in its top-line revenue and a 27 percent increase in EBITDA. With a strong growth strategy in place, it is positioning itself for significant expansion in the chemical sector, attracting
The post Chemical stock with revenue guidance of more than 20% to keep on your radar appeared first on Trade Brains.   Read MoreNews, Stocks, Chemical stock, EBITDA margin guidance, market news, revenue growth guidance, stock market, Stock market news, stock news, Vinati Organics Ltd, Vinati Organics Ltd latest news, Vinati Organics Ltd news, Vinati Organics Ltd stock price Trade Brains