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Check Before You Invest : Vinyl Chemicals (India) Ltd

BSE: 524129 NSE: VINYLINDIA ISIN: INE250B01029
  |   Sector:  Miscellaneous   |   Industry:  Trading

Snapshot

Q.1 Which industry/sub-sector does Vinyl Chemicals (India) Ltd belong to?
Vinyl Chemicals (India) Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.
Q.2 Is Vinyl Chemicals (India) Ltd a good quality company?
Vinyl Chemicals (India) Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Vinyl Chemicals (India) Ltd undervalued or overvalued?
Vinyl Chemicals (India) Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 29.15 24.63
Price to Book 3.69 5.97
Price to Sales 0.74 0.84
EV to EBITDA 21.07 17.81
Q.4 Is Vinyl Chemicals (India) Ltd a good buy now?
Vinyl Chemicals (India) Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Vinyl Chemicals (India) Ltd?
Vinyl Chemicals (India) Ltd revenue growth is 4.7% for FY-2025, which is below its 5-year CAGR of 10.92%, indicating slower growth.

Q.2 Gross Profit margin of Vinyl Chemicals (India) Ltd?
Vinyl Chemicals (India) Ltd Gross profit margin which is the profit after deduction of direct costs, is 4.9% for FY-2025, which is in line with its 5-year median of 4.9%, indicating stable margins.

Q.3 Operating Profit Margin of Vinyl Chemicals (India) Ltd?
Vinyl Chemicals (India) Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 4.25% for FY-2025, which is below its 5-year median of 4.69% indicating decreasing margins.

Q.4 Net Profit Margin of Vinyl Chemicals (India) Ltd?
Vinyl Chemicals (India) Ltd Net Profit Margin is 3.57% for FY-2025, is in line with its 5-year median of 3.57%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 4.9 4.9
Operating Profit Margin (%) 4.25 4.69
Net Profit Margin (%) 3.57 3.57

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Vinyl Chemicals (India) Ltd?
Vinyl Chemicals (India) Ltd Return on Asset is 7.87%, which is below its 5-year historical median of 8.87%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Vinyl Chemicals (India) Ltd?
Vinyl Chemicals (India) Ltd Return on capital employed is 24.91% for FY-2025, which is in line with its 5-year historical median of 25.72%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Vinyl Chemicals (India) Ltd?
Vinyl Chemicals (India) Ltd Return on equity is 18.35% for FY-2025, which is in line with its 5-year historical median of 18.99%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Vinyl Chemicals (India) Ltd?
Vinyl Chemicals (India) Ltd Cash conversion cycle is 12 days, above its 5-year historical median of 11 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 2.2 2.42
ROE (%) 18.35 18.99
ROCE (%) 24.91 25.72
Cash Conversion Cycle 12 days 11 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Vinyl Chemicals (India) Ltd?
Vinyl Chemicals (India) Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.03, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Vinyl Chemicals (India) Ltd?
Vinyl Chemicals (India) Ltd Debt to cash flow from operations is 0.02, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Vinyl Chemicals (India) Ltd?

Q.1 Promoter shareholding and pledge status of Vinyl Chemicals (India) Ltd?
Promoters hold 50.41% of the Vinyl Chemicals (India) Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Vinyl Chemicals (India) Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Vinyl Chemicals (India) Ltd vs industry peers?
Vinyl Chemicals (India) Ltd revenue CAGR is 10.92%, compared to the industry median CAGR of 0%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 4.7 -
Gross Profit Growth (%) 3.3 17.9
Operating Profit Growth (%) 4 16.4
Net Profit Growth (%) - 17.3
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 2.2 0.52
ROE (%) 18.35 2.05
ROCE (%) 24.91 3.6
Cash Conversion Cycle (days) 11.88 46

Valuation & price assessment

Q.1 Stock return of Vinyl Chemicals (India) Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 16.6% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
16.6% 11.7% -16.2% -5%
Q.2 Valuation ratios of Vinyl Chemicals (India) Ltd vs historical?
The current P/E ratio of 29.15 is higher than its historical median of 24.63, indicating that the stock is trading above its historical average valuation.
Q.3 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 29.15 24.63 33.62
Price to Book 3.69 5.97 1.57
Price to Sales 0.74 0.84 2.21
EV to EBITDA 21.07 17.81 14.09

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