Vinati Organics share price has slumped over 15% from its 52-week high level on Wednesday's session. Technical analysts suggest Vinati Organics share price is in a short-term corrective phase and recommends a support for the stock is placed around ₹1,900. Vinati Organics share price opened at ₹1,980 apiece on BSE, the stock touched an intraday high of ₹2,010.05, and an intraday low of ₹1,972.35. Based on trendlyne data, the stock experienced a 9.22% increase in price over the past year and lagged behind its sector by 31.63%.
According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One Vinati Organics share price has experienced a sharp sell-off this month after reaching a fresh 52-week high of ₹2,330, now down over 10% for the month. Momentum favors the bears, and further weakness may be expected in the near term. The next key support is at ₹1,900, with resistance at ₹2,080.
In an exchange filing on Wednesday, the company announced its subscription to an additional 6,93,62,000 fully paid-up equity shares with a face value of ₹10 each at par, totaling ₹69,36,20,000/- (Rupees Sixty Nine Crores Thirty Six Lakhs Twenty Thousand only). This subscription was made towards the rights issue of Veeral Organics Pvt. Ltd, a Wholly Owned Subsidiary. Furthermore, the shares hold equal rank to the existing Equity Shares of the Company.
Brokerage Centrum Institutional Research said after the company's Q1 results that Vinati's Q1 performance suffered sequentially since the first quarter was typically lean, there was a scheduled downtime, power prices were higher, and there were logistical problems. However, the management continued to be optimistic about the consistent pricing and healthy demand environment across all product classes. Over the following three years, the management projected a 20% compound annual growth in revenue and 25% EBITDA margins.
“We estimate FY24-26E revenue/EBITDA/PATCAGR at 20%/ 23%/25%. Despite accounting for robust growth and margin expansion, we believe the valuations remain rich and hence continue to maintain SELL rating on the stock with an unchanged target price of ₹1,602,” the brokerage said.
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