Fundamental Analysis

VIMTA LABS LTD.
Ticker: 524394
BUY: ₹ 397.00
Target: ₹ 450

Vimta Labs Limited is engaged in testing food and drugs. It also does contract research for clinical research and pre-clinical studies providers in India. On a consolidated basis, in Q4FY22, the company recorded net sales and other operating income of Rs 74.09 crore, higher by 23.81 per cent than Rs 59.84 crore reported in Q4FY21. The operating profit was recorded at Rs 23.49 crore in Q4FY22, a robust rise of 38.77 per cent as compared to an operating profit of Rs 16.92 crore in Q4FY21. Q4FY22 recorded a net profit of Rs 11.83 crore in comparison with a net profit of Rs 7.74 crore in Q4FY21, giving a significant rise of 52.85 per cent. The company forecasts robust growth opportunities in the food & pharmaceutical business along with the electronic & electrical segment. Also, the board has approved a capital expenditure of about Rs 60 crore for the next two years towards the expansion of facilities at the life sciences campus. Hence, we recommend BUY.