Camlin Fine shares can double your money in 1 year, says InCred Equities

InCred Equities on Camlin Life Sciences: Domestic brokerage InCred Equities has reaffirmed its ‘Add’ rating on Camlin Fine Sciences, hiking the target price to ₹474 from ₹425 and forecasting a 106 per cent upside over the next year.

 

On the bourses at 1:01 PM, Camlin Fine Sciences share price was trading 0.28 per cent lower at ₹231.85 per share. By comparison, BSE Sensex was trading 0.21 per cent lower at 82,451.90 levels.

 

The brokerage anticipates strong growth in the company’s vanillin and blends businesses, aided by favourable global demand-supply dynamics and recent acquisitions.

 

According to InCred Equities note dated September 21, Camlin Fine Sciences is set to benefit from a rebound in vanillin volumes in the second half of FY26 as tariff uncertainties ease and festive demand in Western markets strengthens. Global demand for vanillin is estimated at around 33,000 tonnes per annum against a capacity of 41,000 tonnes, with methyl vanillin contributing the largest share at 25,000-26,000 tonnes. However, most of this capacity is concentrated in China.

 

 

“Recent anti-dumping duties in Europe and near-zero US imports from China have created a demand-supply mismatch,” Satish Kumar and Chaitya Doshi of InCred Equities noted, adding that the shift opens doors for Indian producers. The company is projected to sell around 2,700 tonnes of vanillin in FY26.

 

Beyond vanillin, the company’s high-margin blends business continues to expand at a high-teens growth rate, supported by its presence across food and beverage antioxidants, biofuels, animal nutrition, pet food, and nutrition and health. The global antioxidant and blends market, valued at$18-20 billion, carries high entry barriers due to regulatory, technical, and supply chain challenges. 

 

InCred Equities analysts said the company enjoys a competitive edge through backward integration, strong customer relationships, and technical expertise, factors that are expected to deliver a Return on Capital Employed (RoCE) of 55 per cent by FY27.

 

The brokerage, however, flagged concerns over the company’s first-quarter performance. Camlin Fine Sciences’ Q1FY26 earnings were marred by a mandatory plant shutdown, with reported Ebitda at ₹19.1 crore. Adjusted for one-off costs, Ebitda stood at ₹43.5 crore. InCred Equities expressed dissatisfaction with management’s stance of not disclosing the shutdown to exchanges, noting, “While such reasoning may hold if only the annual results were reported, regulatory requirements mandate quarterly disclosures.”

 

Looking ahead, InCred Equities forecasts Camlin Fine Sciences’ revenues to grow at a compound annual growth rate (CAGR) of 18.8 per cent and Ebitda at 56.8 per cent through FY28, driven by rising sales of vanillin and blends. The brokerage expects Ebitda margins to expand from 10 per cent in FY25 to 21.8 per cent by FY28, with return ratios improving steadily. By FY28, the company is also projected to turn net cash positive.

 

“We value CFSL at 15x one-year forward EV/Ebitda, arriving at a higher target price of ₹474,” InCred Equities analysts said.