India's Vinati Organics falls as analysts flag weak demand, cut price targets

Vinati Organics

22/05/2023 10:05

** Shares of Vinati Organics Ltd  VNTI.NS  fall as much as
5.09%, posting steepest intraday pct decline in 11 months
    ** Slide despite the company reporting 14% Y/Y rise in
consolidated net profit in March quarter  urn:newsml:reuters.com:*:nFWN37G01X
    ** While core profit and profit saw a Y/Y growth, the
near-term outlook has deteriorated, says Kotak Institutional
Equities
    ** Warns FY2024 is likely to be a year of subdued growth for
VNTI and cuts FY2024 and FY2025 earnings estimates by 26% and
17% respectively
    ** Kotak has a "reduce" rating on VNTI, price target cut to
1,805 rupees from 2,250 rupees after the earnings
    ** Phillip Capital says low demand for the company's key
products like as ATBS (acrylamide tertiary butyl sulfonic acid),
weak product mix and softening prices led to revenue slippage
    ** Trading volume is ~110,000 shares as of 2:25 p.m. IST,
nearly thrice the 30-day avg - Refinitiv data
    ** Eight analysts rate stock 'buy' or higher, three 'hold'
and one sell;' median PT is 2,250 rupees 

 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))