Accumulate Fine Organic Industries, target price Rs 4,779: Prabhudas Lilladher
Fine Organic Industries Ltd. with a target price of Rs 4779.0. The current market price of Fine Organic Industries Ltd. is Rs 4281.25 .
Fine Organic Industries Ltd., incorporated in the year 2002, is a Mid Cap company (having a market cap of Rs 13146.23 Crore) operating in Chemicals sector.
Fine Organic Industries Ltd. key Products/Revenue Segments include Speciality Chemicals, Scrap for the year ending 31-Mar-2023.
Investment Rationale
Fine Organic (FINEORG IN) reported a revenue of Rs 5.2bn (-25.3% YoY/22.5%). The topline was higher than our estimates by 15%. Raw material prices have been stabilized and are not expected to be volatile for at least next 3 months. Thailand plant received one approval, with second one expected in next week, commencement of the plant is expected in June.
All the plants of the company are running at optimal capacity as per the management, except the Patalganga plant which will take another 2-4 years to achieve peak utilization. FINEORG is currently trading at 35x FY25E EPS. We expect EPS of Rs140 in FY26.
Due to recent price correction and expected momentum in sales to continue, we upgrade our rating from Hold to Accumulate on the stock with a target price of Rs4779, valuing it at 34x FY26 EPS.
Financials For the quarter ended 31-03-2024, the company has reported a Consolidated Total Income of Rs 569.72 Crore, up 12.63 % from last quarter Total Income of Rs 505.84 Crore and down -6.54 % from last year same quarter Total Income of Rs 609.61 Crore. Company has reported net profit
