Vinati Organics Limited Initiating Coverage Report By Motilal Oswal

Valuations & View: As a diversified specialty chemicals company, VOL is a play on three key emerging trends: (1) Rising demand for specialty chemicals in India (15% CAGR FY15-FY20E),(2) Migration of global chemical manufacturing from China to India (Asia to have 70% production share by 2030), (3) established product positioning & lowest cost producer. We value VOL at 18x FY 18E EPS of INR 33.1 with a target price of INR 595, which is an upside of 32% from CMP.

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