Vinati Organics Ltd Stock Analysis

BSE: 524200 | NSE: VINATIORGA | Chemicals | Large Cap

BSE Share Price May 17, 11:25
2029.00 33.50 (1.68%)

DeciZen - Make an Informed Decision on Vinati Organics

Overall Rating

1. Quality

2. Valuation

Overvalued

3. Price Trend

FAQs

1. Is Vinati Organics Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Vinati Organics Ltd is a good quality company.

2. Is Vinati Organics Ltd undervalued or overvalued?

The key valuation ratios of Vinati Organics Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Vinati Organics Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Vinati Organics Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

10 Year X-Ray of Vinati Organics:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Vinati Organics Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
ROCE % 21.5%18.3%21.1%25.3%25.3%21.7%18.9%28.7%27.4%18.5%-
Value Creation Index 0.50.30.50.80.80.60.41.11.00.4-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 4475536967726316417301,1281,0299541,616
YoY Gr. Rt. %-23.6%25.9%10.9%-18.2%1.6%13.9%54.6%-8.8%-7.3%-
Adj EPS 5.778.911.212.813.113.6263125.433.7
YoY Gr. Rt. %-22.4%27.8%26.6%13.4%2.9%3.5%91.1%19.3%-17.9%-
BVPS (₹) 18.924.431.442.152.465.977.5102.3124.5150.2177.9
Adj Net Profit 56.168.787.7116132135140267318261347
Cash Flow from Ops. 19.892.1131113167130138200416219-
Debt/CF from Ops. 8.72.61.20.60.300.1000-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 8.8%8.6%9.4%-7.3%
Adj EPS 18.1%14.8%23.2%-17.9%
BVPS 25.923.424.720.6
Share Price 45.8% 36.3% 30.8% 17%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity % 33.932.131.831.22722.218.928.927.318.520.6
Op. Profit Mgn % 21.621.822.724.932.83427.437.740.33726.9
Net Profit Mgn % 12.512.412.61520.821.119.123.730.927.421.5
Debt to Equity 0.910.50.20.1000000
Working Cap Days 103110102110144143155132149193144
Cash Conv. Cycle 72807065757582678198113

Recent Performance Summary

Net Profit is growing at healthy rate in last 3 years 23.21%

Sales growth is good in last 4 quarters at 69.05%

Return on Equity has declined versus last 3 years average to 20.60%

Sales growth has been subdued in last 3 years 9.36%

Latest Financials - Vinati Organics Ltd.

Standalone Consolidated
TTM EPS (₹) 33.7 33.7
TTM Sales (₹ Cr.) 1,616 1,616
BVPS (₹.) 177.9 177.9
Reserves (₹ Cr.) 1,818 1,818
P/BV 11.22 11.22
PE 59.16 59.17
From the Market
52 Week Low / High (₹) 1562.95 / 2289.55
All Time Low / High (₹) 0.13 / 2289.55
Market Cap (₹ Cr.) 20,510
Equity (₹ Cr.) 10.3
Face Value (₹) 1
Industry PE 34.4

Management X-Ray of Vinati Organics :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

Analyst's Notes

News

About Vinati Organics Ltd

Vinati Organics Ltd. (VOL) was established in 1989. It is a specialty chemical company, focusing on manufacturing specialty chemicals and organic intermediaries. It combines innovation with chemistry to deliver value-added products to its customers. It follows the highest quality standards and its products meet diverse customer expectations.

Business area of the company

The company is a specialty chemical company, manufacturing specialty chemicals and organic intermediaries. With two state-of-the-art manufacturing units in Maharashtra, VOL is a leading producer of two major products - Isobutyl Benzene (IBB) and 2-Acrylamido 2 Methylpropane Sulfonic Acid (ATBS). The Company’s zeal to combine innovation with chemistry enables it to deliver superior quality products to its diverse client base. Vinati Organics has successfully established a strong foothold across the globe, with its products reaching out to customers in many countries.

Products of the company

  • Isobutyl Benzene (IBB)
  • 2-Acrylamido 2 Methylpropane Sulfonic Acid (ATBS)
  • Isobutylene (IB)
  • High Purity- Methyl Tertiary Butyl Ether (HPMTBE)
  • N-Tertiary Butyl Acrylamide (TBA)
  • N-Tertiary Octyl Acrylamide (TOA)

Awards/ recognition

  • Mahad Works ISO Certificate
  • Ote Works ISO Certificate
  • National Safety Award
  • Maharashtra State Export Award
  • Worlds’ largest producer and supplier of IBB with global product presence IBB is presently being used and appreciated by all manufactures of Ibuprofen in the world including the founder manufacturer of Ibuprofen i.e. M/s. Knoll Pharmaceuticals of UK and BASF Corporation of USA.
  • World’s third biggest and fastest growing supplier of ATBS and related products. Presently exporting ATBS to Europe, Americas and Asia.
  • Presently being used and appreciated by all manufactures of Ibuprofen in India. Its quality is also internationally acclaimed and appreciated by the founder manufacturer of Ibuprofen i.e. Knoll Pharmaceuticals of UK and BASF Corporation of USA.
  • The Company was awarded the ‘Supplier of the Year’ (FY 2014-15) by BASF
  • VOL was ranked among the ‘Fastest Growing Companies’ in India Outlook Business in May 2014.
  • In the FE CFO of the Year Awards 2019, VOL was adjudged winner in the Large Enterprises - Manufacturing Category.
  • VOL was declared STAR SME of the Year by the Business Standard Annual Awards 2019.
  • VOL adjudged Company of the Year in Chemicals by FICCI Chemicals and Petrochemicals Awards 2019.
  • VOL was named the Most Promising Company of the Year by CNBC-TV18 IBLA 2020.

Milestones

  • 1989: Vinati Organics Limited (VOL) established
  • 1992: Isobutylbenzene (IBB) plant comes onstream with 1200 MTA  production capacity 
  • 1996: IBB capacity expansion to 3000 MTA
  • 1997: IBB capacity expansion to 5000 MTA
  • 2002: ATBS plant onstream with 1000 MTA production capacity
  • 2006: IBB capacity expansion to 10,000 MTA. ATBS capacity expansion to 3600 MTA
  • 2007: Started n-tertiary Butylacrylamide (TBA) production
  • 2008: IBB capacity expansion to 14,000 MTA
  • 2009: ATBS capacity expansion to 12000 MTA. TBA capacity expansion to 500 MTA
  • 2010: VOL listed amongst Forbes Asia's 200 Best Under A Billion companies.VOL ranked amongst the Top 10 Fastest Growing Companies in India for 2009 by The Economic Times.2011: VOL listed amongst Forbes Asia's 200 Best Under A Billion companies.
  • 2011: Credit rating agency, ICRA has suspended LBBB+ rating assigned to Rs 61.3 crore term loans and Rs 30.0 crore cash credit facilities, and, A2 rating to Rs 11 crore bank guarantees' and Rs 10 crore letter of credit facilities of Vinati Organics.
  • 2013: Credit rating agency, CARE has reaffirmed 'A-' rating to Vinati Organics' long term bank facilities (Term loan) worth Rs 145.29 crore and 'A2+' rating to company's Short term Bank Facilities (Non-fund based facilities) worth Rs 32.13 crore.  
  • 2015: Vinati Organics entered into long term tripartite agreement with USA & Japan based chemical companies for supply of a customized product. 
  • 2017: Vinati Organics expand IsoButyl Benzene (IBB) capacity to 25000 MT at its Mahad facility in order to meet the strong demand outlook for the product.
  • 2020: Vinati Organics has subscribed to the Memorandum & Articles of Associations to the extent of 99% of the Share Capital of Veeral Organics, which has been incorporated under the Indian Companies Act, 2013 on October 5, 2020.
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