What is CAGR? What does CAGR table indicate for Vinati Organics Ltd?

Compounded average growth rate (CAGR) measures the average annual growth rate compounded year-on-year over a period of time.

Vinati Organics Ltd Stock Analysis

Mid Cap

Evaluated by 3061 users | BSE: 524200 | NSE: VINATIORGA |
Chemicals

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...

Decision Maker

Standalone basis

The valuation guidance of this company is based on Standalone basis.

1. Right Stock

2. Right Price

Price Chart

3. Right Time

10 Year X-Ray

Standalone basis Standalone basis P Consolidated basis

Analysis of Financial Track Record

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

What is a Financial Track Record? How to read this chart in order to understand the data present here?

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'11	Mar'12	Mar'13	Mar'14	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20
Return on Capital Employed	28.06%	21.54%	18.31%	21.13%	25.3%	25.32%	22.07%	18.88%	28.74%	27.22%
Value Creation Index	1.55	0.96	0.66	0.92	1.30	1.30	1.01	0.72	1.61	NA

Growth Parameters	Growth Parameters Colour Code Guide

Net Sales (Rs. Cr.)	323	447	553	696	772	631	641	730	1,128	1,029
Y-o-Y Gr. Rt.	-	38.7%	23.6%	25.9%	10.9%	-18.2%	1.6%	13.9%	54.6%	-8.8%
Adjusted EPS (Rs.)	4.94	5.68	6.95	8.88	11.24	12.75	13.34	13.58	25.95	30.78
Y-o-Y Gr. Rt.	-	15%	22.4%	27.8%	26.6%	13.4%	4.6%	1.8%	91.1%	18.6%
Book Value per Share (Rs.)	14.55	18.94	24.43	31.4	42.07	52.41	65.9	77.51	102.28	124.48
Adjusted Net Profit	48.8	56.1	68.7	87.7	116	132	138	140	267	316
Net Op. Cash Flow (Rs. Cr.)	31.3	19.8	92.1	131	113	167	130	138	200	416
Debt to Cash Flow from Ops	2.46	8.74	2.58	1.23	0.58	0.25	0.02	0.11	0.02	0

Difference between Standalone Basis and Consolidated basis? Which method is preferred for Vinati Organics Ltd. ?

Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.

Vinati Organics Ltd. should be analysed on a Standalone basis

CAGR CAGR Colour Code Guide

	9 yrs	5 yrs	3 yrs	1 yr
Net Sales	13.8%	5.9%	17.1%	-8.8%
Adjusted EPS	22.5%	22.3%	32.1%	18.6%
Book Value per Share	26.9	24.2	23.6	21.7
Share Price	49.7%	48.3%	54.8%	86.7%

Key Financial Parameter	Performance Ratio Colour Code Guide

	Mar'11	Mar'12	Mar'13	Mar'14	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20
Return on Equity (%)	40.15	33.91	32.06	31.8	31.18	26.98	22.56	18.9	28.87	27.15
Operating Profit Margin (%)	21.61	21.63	21.77	22.69	24.89	32.78	34	27.43	37.68	40.32
Net Profit Margin (%)	15.11	12.53	12.42	12.59	15.03	20.84	21.49	19.12	23.65	30.75
Debt to Equity	0.54	0.92	0.98	0.52	0.15	0.08	0	0.02	0	0
Working Capital Days	93	103	110	102	110	144	143	155	132	149
Cash Conversion Cycle	62	72	80	70	65	75	75	82	67	81

Management X-Ray

Corporate Governance What do we look at?

Corporate Governance

Board Credentials

Promoter's holding

Transparency

Integrity

Shareholding Pattern

Entity	Percentage Holding
Promoters	74.06%
Institutions	10.79%
Non-Institutions	15.15%

Promoter's Holding & Share Pledging

Pledged ^*

0.00

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

FAQs

1. Is Vinati Organics Ltd a good quality company?

MoneyWorks4Me analysed the past 10-year performance of Vinati Organics Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Vinati Organics Ltd is a good quality company. However, for specific investment actions please connect with your investment advisor.

2. Is current market price of Vinati Organics Ltd a good price to buy it?

The 5-year analysis of Vinati Organics Ltd's performance infers:

Vinati Organics Ltd earnings have grown by 22.3%, whereas share price has appreciated 48.3% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

3. What is Vinati Organics Ltd share price return in the past 10 years ?

We analysed the performance of Vinati Organics Ltd share prices over the last 10 years. Here is what we found out:

Vinati Organics Ltd share price has appreciated 46.1% annually over the past ten years.

About Company

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.