The stock currently trades at 16.7x / 11x / 7.8x of FY17p / FY18e /FY19e EPS. We believe, increasing demand for toxin free stabilizers, growth in
PVC industry, opportunities in export markets, capacity expansion would create huge opportunity for VEL’s revenue/ earning to grow at a CAGR of ~41%/91% over FY17p-19e. We maintain our BUY recommendation with a price target of Rs 42 implying upside of 80%. (14x on FY19e EPS).
The reported PAT was negative to Rs. - 8mn vs Rs.103mn last year due to one-time exceptional loss of Rs.16.3cr. led by a fire incident that occurred on 31st March 2017. The company has claimed insurance for the same which would be added to the P&L going forward.
PVC industry, opportunities in export markets, capacity expansion would create huge opportunity for VEL’s revenue/ earning to grow at a CAGR of ~41%/91% over FY17p-19e. We maintain our BUY recommendation with a price target of Rs 42 implying upside of 80%. (14x on FY19e EPS).
The reported PAT was negative to Rs. - 8mn vs Rs.103mn last year due to one-time exceptional loss of Rs.16.3cr. led by a fire incident that occurred on 31st March 2017. The company has claimed insurance for the same which would be added to the P&L going forward.