Check Before You Invest : Vinati Organics Ltd

Snapshot

Q.1 Which industry/sub-sector does Vinati Organics Ltd belong to?

Vinati Organics Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.

Q.2 Is Vinati Organics Ltd a good quality company?

Vinati Organics Ltd is a good quality company, based on a consistently good 6-year financial track record.

Q.3 Is Vinati Organics Ltd undervalued or overvalued?

Vinati Organics Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Vinati Organics Ltd a good buy now?

Vinati Organics Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Vinati Organics Ltd?

Vinati Organics Ltd revenue growth is 18.3% for FY-2025, which is above its 5-year CAGR of 16.92%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Vinati Organics Ltd?

Vinati Organics Ltd Return on capital employed is 20.22% for FY-2025, which is below its 5-year historical median of 23.8%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.3 Return on Asset of Vinati Organics Ltd?

Vinati Organics Ltd Return on Asset is 13.25%, which is below its 5-year historical median of 16.96%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Vinati Organics Ltd?

Vinati Organics Ltd Return on equity is 15.42% for FY-2025, which is below its 5-year historical median of 19.08%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Vinati Organics Ltd?

Vinati Organics Ltd Cash conversion cycle is 102 days, in line with its 5-year historical median of 99 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.73	0.73
ROE	15.42	19.08
ROCE	20.22	23.8
Cash Conversion Cycle	102 days	99 days

Q.6 Gross Profit margin of Vinati Organics Ltd?

Vinati Organics Ltd Gross profit margin which is the profit after deduction of direct costs, is 27.8% for FY-2025, which is below its 5-year median of 30%, indicating decreasing margins.

Q.7 Operating Profit Margin of Vinati Organics Ltd?

Vinati Organics Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 25.9% for FY-2025, which is in line with its 5-year median of 26.96% indicating stable margins.

Q.8 Net Profit Margin of Vinati Organics Ltd?

Vinati Organics Ltd Net Profit Margin is 18.03% for FY-2025, is below with its 5-year median of 20.29%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	27.8	30
Operating Profit Margin	25.9	26.96
Net Profit Margin	18.03	20.29

Q.9 Debt to Equity ratio of Vinati Organics Ltd?

Vinati Organics Ltd Debt-to-Equity ratio is 0.02, which is lower with the industry average of 0.26, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Vinati Organics Ltd?

Vinati Organics Ltd Debt to cash flow from operations is 0.14, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Vinati Organics Ltd?

Promoters hold 74.28% of the Vinati Organics Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Vinati Organics Ltd vs industry peers?

Vinati Organics Ltd revenue CAGR is 16.92%, compared to the industry median CAGR of 9.62%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	18.3	9.6
Gross Profit Growth	23.8	14.3
Operating Profit Growth	23.6	12
Net Profit Growth	25.4	12.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.73	0.97
ROE	15.42	10.68
ROCE	20.22	13.26
Cash Conversion Cycle (days)	101.95	63

Valuation & price assessment

Q.1 Stock return of Vinati Organics Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 19.3% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	19.3%	-4.7%	-11.3%	-16.6%

Q.3 Valuation ratios of Vinati Organics Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	31.29	48.92	27.93
Price to Book	4.57	7.49	2.22
Price to Sales	6.1	9.09	1.93
EV to EBITDA	19.72	30.05	14.18

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