Vinati Organics Drops 15% from Peak: More Downside Ahead for This Specialty Chemical Stock?

Vinati Organics’ share price has fallen over 15% from its 52-week high, entering a short-term correction. On Wednesday, the stock opened at ₹1,980 on the BSE, reached an intraday high of ₹2,010.05, and a low of ₹1,972.35. Despite a 9.22% increase in price over the past year, the stock has underperformed its sector by 31.63%.

Rajesh Bhosale, a Technical and Derivative Analyst at Angel One, noted that Vinati Organics has seen a sharp sell-off this month after hitting a 52-week high of ₹2,330. The stock is down over 10% for the month, with momentum favoring further decline. Key support is at ₹1,900, with resistance at ₹2,080.

On Wednesday, the company announced a subscription to an additional 6,93,62,000 fully paid-up equity shares in its subsidiary, Veeral Organics Pvt. Ltd., totaling ₹69.36 crore.

Brokerage firm Centrum Institutional Research highlighted that Vinati’s Q1 performance was weak due to seasonal factors, higher power costs, and logistical issues. However, the company remains optimistic about steady pricing and strong demand. The management expects 20% annual revenue growth and 25% EBITDA margins over the next three years.

Despite this positive outlook, Centrum maintains a “SELL” rating on the stock, citing high valuations, with a target price of ₹1,602.