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Vinati Organics Ltd. Stock Analysis

Mid Cap
Evaluated by 2850 users | BSE: 524200 | NSE: VINATIORGA |
Chemicals
Vinati Organics Limited was established in 1989 to manufacture specialty organic chemicals. It has since grown to become the world’s largest manufacturer of Isobutylbenzene (IBB) and second largest manufacturer of 2-Acrylamido 2-Methylpropane Sulfonic Acid (ATBS). The company’s...
1. Right Stock
Very Good
2. Right Price
3. Right Time

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'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'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 1.550.960.660.921.301.301.010.721.61NA
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 3234475536967726316417301,1281,029
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.) 4.945.686.958.8811.2412.7513.3413.5825.9530.78
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.) 14.5518.9424.4331.442.0752.4165.977.51102.28124.48
Adjusted Net Profit 48.856.168.787.7116132138140267316
Net Op. Cash Flow (Rs. Cr.) 31.319.892.1131113167130138200416
Debt to Cash Flow from Ops 2.468.742.581.230.580.250.020.110.020
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 26.924.223.621.7
Share Price 50.8% 43.8% 40.3% 21.1%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 40.1533.9132.0631.831.1826.9822.5618.928.8727.15
Operating Profit Margin (%) 21.6121.6321.7722.6924.8932.783427.4337.6840.32
Net Profit Margin (%) 15.1112.5312.4212.5915.0320.8421.4919.1223.6530.75
Debt to Equity 0.540.920.980.520.150.0800.0200
Working Capital Days 93103110102110144143155132149
Cash Conversion Cycle 62728070657575826781
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 74.06%
Institutions 11.25%
Non-Institutions 14.69%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

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

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

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

Vinati Organics earnings have grown by 22.3%, whereas share price has appreciated 43.8% 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.

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

Vinati Organics share price has appreciated 41.7% annually over the past ten years.

Vinati Organics Limited was established in 1989 to manufacture specialty organic chemicals. It has since grown to become the world’s largest manufacturer of Isobutylbenzene (IBB) and second largest manufacturer of 2-Acrylamido 2-Methylpropane Sulfonic Acid (ATBS). The company’s products are exported to customers in countries across Europe, America and Asia.

Vinati Organics Ltd. (VOL) is a specialty chemical company producing organic intermediates, monomers and polymers. VOL

Vinati Organics Limited was established in 1989 to manufacture specialty organic chemicals. It has since grown to become the world’s largest manufacturer of Isobutylbenzene (IBB) and second largest manufacturer of 2-Acrylamido 2-Methylpropane Sulfonic Acid (ATBS). The company’s products are exported to customers in countries across Europe, America and Asia.

Vinati Organics Ltd. (VOL) is a specialty chemical company producing organic intermediates, monomers and polymers. VOL is a public limited company, listed on the Bombay Stock Exchange. VOL started commercial production at its second unit installed in Lote Parshuram and became the third company in the world to manufacture specialty monomers, 2-Acrylamido 2-methylpropanesulfonic Acid. The plant was installed based on breakthrough technology developed with the aid of National Chemical Laboratories (NCL), Pune. ATBS is a co-monomer having applications is acrylic fiber, water treatment, emulsions, paints and oil field drilling industries.

VOL's substantial growth is mainly attributed to its efficient manufacturing and sales practices.

The company always executes critical orders which are as per the customer demands. At Vinati Organics, core competency largely depends in R&D program, which fructifies in development & optimization of various products & processes, and continual improvement in products’ quality. The company's strong emphasis on quality, backed by a highly competent technical team, has enabled it to establish a successful track record in nurturing long term relationships with highly reputed companies.

Product range of the company includes:

Aromatics

It manufactures and exports an assortment of organic chemicals that can be formulated as per the specific requirements of their clients. The pure and safe to use organic chemicals are primarily used to develop other chemicals. Some of its other uses include making of various products such as plastics, dyes and pharmaceutical products. Each chemical is offered in a specific packaging option.

  • Isobutylbenzene (IBB)
  • Normal Butylbenzene (NBB)
  • Hexenes (C6H12)(C-6 Aliphatic  Hydrocarbons)
  • C 10 Aromatic Solvent

Industrial Monomers

Backed by a pool of diligent personnel, VOL offers a range of monomers that are used in various applications. Used in different industries, the product has features of high purity level, safe to use and easy to handle. Known for hydrolytic and thermal stability, monomers are offered in different packaging options.

  • 2-Acrylamido 2- methylpropanesulfonic Acid (ATBS)
  • Sodium Salt of 2-Acrylamido 2-methylpropanesulfonic Acid (NaATBS)
  • N-Tertiary Butyl Acrylamide (TBA)

Industrial Polymers

The company leverages on their hard earned success and provide a range of pure and environment friendly polymers in client specific formulations. The product array receives appreciation for its excellent thermal & chemical stability and ease of handling. Used in various industrial applications, their range of polymers is available in different packaging options.

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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.

Achievements/ 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.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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