Buy This Chemical Sector Midcap Stock, Shares Likely To Give Up To 24% Return: Geojit

Geojit has placed a "Buy" on Vinati Organics Ltd. (VOL) for a target price of Rs 2,148/share. It sees a potential upside of 24% from the level. It is a Chemical sector midcap stock having a market capitalisation of Rs 17,907.72 crore. VOL enjoys global leadership in two specialty chemicals, with a market share of 70% in IBB (isobutyl benzene) and 80% in ATBS (2-Acrylamindo 2-Methylpropane Sulfonic Acid).

Stock Performance & Returns

The shares of VOL last traded at Rs 1,730.95 apiece, down 2.06% from its previous close of Rs 1,767.95 apiece. Its 52 week high on 12 September 2022 at Rs 2377 apiece, and 52 week low on 21 March 2023 at Rs 1,692.55 apiece, respectively.

In the past week it has given 1% positive return. It has fallen 6.23% in 1 month and 11.48% in 3 months, respectively. In the past year, it has given 10.85%. In the past 3 years, it has given 118.9% positive return. In the past 5 years, it has given 299.71% positive return.

Profitability momentum continues..., buy for a target price of Rs 2,148/share

Geojit has said, "We maintain a positive stance on VOL given its focus on introduction of new products by leveraging growth opportunities in existing portfolio, strong balance sheet and healthy RoE & ROCE of above 24% (avg. last 5 years). We value VOL at P/E of 30x as we roll forward to FY25E, and given strong earnings outlook and healthy margin profile, we maintain Buy rating with target price of Rs.2,148."

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