Target: ₹4,796CMP: ₹3,695.10Privi Speciality Chemicals has evolved from a two-product aroma-chemical manufacturer in 1992 into an integrated supplier with more than 75 products and relationships with leading fragrance houses and FMCG companies. Aroma chemicals form a small share of final product costs, but quality and timely supply are critical. Long qualification cycles and a broad product basket make customer relationships highly sticky.Privi Speciality Chemicals is investing around ₹1,200-1,250 crore to expand its capacity from 48,000 tonnes to 66,000-72,000 tonnes over the next three years. The expansion includes phased brownfield additions, the ramp-up of PRIGIV and new-product blocks. A shift towards higher-value woody, amber, floral, musk and fine-fragrance products should also improve realisation. New products such as menthol, maltol, cyclopentanone and furfural broaden its addressable market.We expect gross margin to remain around 48 per cent and EBITDA margin at 25-26 per cent, supported by higher utilisation, a better product mix and operating leverage. Capacity ramp-up and improving realisation should lift EPS to around ₹123 in FY28F and ₹151 in FY29F. Applying a conservative 35x one-year forward P/E to the average FY28F-29F EPS of ₹137 gives a target price of around ₹4,796. Sticky customers, visible capacity growth, backward integration and a wider specialty pipeline support our Add rating on the stock. Downside risk: Supply chain problems which can lead to raw material cost inflation.Published on July 15, 2026