Buy Fine Organic Industries; target of Rs 6761: Prabhudas Lilladher

Moneycontrol • 1 day ago

Original source

Key Investment Pillars

  • Fine Organic Industries' SEZ plant commercialization is expected in FY28, unlocking growth potential.
  • The company's proposed US manufacturing facility will further drive expansion.
  • Higher realizations and easing raw material costs have contributed to margin expansion.
  • The acquisition of Oleofine Organics (Malaysia) is expected to enhance the company's capabilities.

Thesis Validation Checklist

To validate the 'BUY' thesis, investors should watch for: the successful commercialization of the SEZ plant, progress on the US facility, and the company's ability to maintain margin expansion. Key signals include the company's revenue growth, EBITDA margin, and return ratios. If these developments are positive, it would support the investment thesis and target price of INR6,761.