Shares of Vinati Organics rose for a third session on February 8, as investors were encouraged by the company’s upbeat operating results for the quarter ending December.

Shares of Vinati Organics were up 4.4% at Rs 1,972.55 on the National Stock Exchange at 11:35 am.

The company announced its quarterly earnings for the October-December period on February 6. Despite a seasonally weak October-December quarter, the company benefitted from gross margin expansion and operating expenses due to product pricing advantages and lower power and fuel costs.

As a result, the company’s EBITDA margin expanded by 710 bps YoY to 32.2% in the December quarter.

Net sales also rose by 37.87% to Rs 508.66 crore, which helped profit increase by 50.7% to Rs 125.41 crore.

Most brokerages remain bullish on the stock, buoyed by positive quarterly results.

MOFSL has a buy rating on the stock with a price target of Rs 2,615, reflecting an upside potential of nearly 38% from Tuesday’s close.

Another brokerage, Centrum Broking, is also optimistic about the company’s technology platform and sustainable higher profits. Hence, the brokerage maintained its buy call with a target price of Rs 2,401.

However, in stark contrast, HDFC Securities issued a sell rating on the stock with a price target of Rs 1,690, indicating a downside risk of almost 11%.