Stocks

Broker's call: Fine Organic Ind (Buy)

| Updated on October 04, 2021

HDFC Securities

Fine Organic Ind (Buy)

Target: ₹3,910

CMP: ₹3,507.2

Our Buy recommendation on Fine Organic Industries is premised on: constant focus on R&D; diversified product portfolio; capacity-led expansion growth opportunity; and leadership in oleo-chemical based additives in the domestic and global markets with a loyal customer base. In the absence of any major Capex over the next two years, the RoCE would expand from 19 per cent in FY22 to 28 per cent in FY24.

FOIL’s margins have been under pressure for over a year, owing to: the volatile and high raw material prices; and high freight cost impacted by global supply chain disruption. Raw material prices continue to be high currently, but aren’t as volatile, owing to reduction in import duty on vegetable oils by the Government, reduction in the ceiling rate of its crude palm oil export levy by Indonesia and reduction in excessive buying done by China.

Published on October 04, 2021

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.

You May Also Like