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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 524200 | NSE: VINATIORGA

Vinati Organics Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 9:15 pm

Market Cap 18,536 Cr.
Current Price 1,787
High / Low2,331/1,462
Stock P/E49.6
Book Value 249
Dividend Yield0.39 %
ROCE18.5 %
ROE13.8 %
Face Value 1.00
PEG Ratio10.62

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Vinati Organics Ltd

Competitors of Vinati Organics Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Hindustan Organic Chemicals Ltd 269 Cr. 40.166.0/33.0 14.60.00 %1.15 %% 10.0
Vinati Organics Ltd 18,536 Cr. 1,7872,331/1,46249.6 2490.39 %18.5 %13.8 % 1.00
Seya Industries Ltd 74.7 Cr. 28.138.8/17.8 3110.00 %0.32 %0.42 % 10.0
Industry Average9,402.50 Cr618.4049.60191.530.13%6.66%7.11%7.00

All Competitor Stocks of Vinati Organics Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales280386374369486506566517519431463448550
Expenses181285273276347375418369372322358333400
Operating Profit9910210193139131148148147109105115150
OPM %35%26%27%25%29%26%26%29%28%25%23%26%27%
Other Income718141515192011121511910
Interest0000000010111
Depreciation11111112121313171713171919
Profit before tax951081039614213615514214211197103140
Tax %25%25%21%13%29%26%25%25%26%25%25%25%25%
Net Profit71818183101101116107105837277104
EPS in Rs6.897.887.928.109.849.8511.2910.4010.188.107.057.4910.08

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales5546967726316417301,1281,0299541,6162,0661,9001,986
Expenses4345435804244235317036146011,1801,4931,4291,491
Operating Profit120153192207218198425415353435573471495
OPM %22%22%25%33%34%27%38%40%37%27%28%25%25%
Other Income4996123130452661523938
Interest1218108322212353
Depreciation10151819222327334345597376
Profit before tax103129174187206203425425335449563432454
Tax %33%33%33%29%32%29%34%21%20%23%26%25%
Net Profit6986116132140144282334269347419323340
EPS in Rs6.978.7511.2212.7513.5914.0027.4832.4826.2033.7340.7831.2032.92
Dividend Payout %18%17%16%16%2%16%13%17%23%19%17%22%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)24.64%34.88%13.79%6.06%2.86%95.83%18.44%-19.46%29.00%20.75%-22.91%
Change in YoY Net Profit Growth (%)0.00%10.25%-21.09%-7.73%-3.20%92.98%-77.39%-37.90%48.46%-8.25%-43.66%

Vinati Organics Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:11%
5 Years:11%
3 Years:26%
TTM:7%
Compounded Profit Growth
10 Years:14%
5 Years:3%
3 Years:6%
TTM:6%
Stock Price CAGR
10 Years:24%
5 Years:13%
3 Years:-3%
1 Year:3%
Return on Equity
10 Years:21%
5 Years:20%
3 Years:18%
Last Year:14%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 6:35 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital10101010101010101010101010
Reserves2313004245306707861,0411,2691,5331,8182,2032,4542,573
Borrowings2371626542215402183558
Other Liabilities6780100104139168173163188243335358431
Total Liabilities5465525996878219801,2281,4431,7342,0902,5842,8273,022
Fixed Assets2903043273824684574757517578731,1591,3301,358
CWIP14102025735191315547229246241
Investments13333621329622728998256237422
Other Assets2292352492782843564654346331,0719401,0141,001
Total Assets5465525996878219801,2281,4431,7342,0902,5842,8273,022

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +92131113167130138200416219127516338
Cash from Investing Activity +-113-9-53-72-27-39-243-197-198-256-333-353
Cash from Financing Activity +22-113-75-50-45-30-40-109-3-46-61-106
Net Cash Flow29-16455970-8310918-175121-122

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-117.00-9.00127.00165.00216.00183.00421.00415.00351.00417.00538.00466.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days756061668089797210610482102
Inventory Days6041445579796479115757972
Days Payable171217284061374762464136
Cash Conversion Cycle117898794119107106104158132120137
Working Capital Days7752586211912111297138141113140
ROCE %27%30%38%36%33%28%46%37%24%27%28%19%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters74.06%74.06%74.06%74.06%74.06%74.06%74.06%74.06%74.06%74.06%74.06%74.29%
FIIs4.39%4.45%4.53%4.58%4.66%4.76%4.81%4.79%4.47%4.64%4.71%4.93%
DIIs6.82%6.87%7.54%7.85%8.11%7.99%7.88%7.90%8.11%8.18%7.55%7.30%
Public14.73%14.62%13.87%13.51%13.17%13.19%13.25%13.26%13.36%13.12%13.69%13.46%
No. of Shareholders65,11382,58175,56072,53972,29875,75980,64584,40490,93493,9891,07,0221,06,894

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Mirae Asset Large & Midcap Fund1,434,4900.77250.1436,3882024-11-20228.72%
Mirae Asset ELSS Tax Saver Fund1,083,3590.92188.88436,3882024-11-20148.26%
Mirae Asset Large Cap Fund909,9480.42158.64436,3882024-11-20108.52%
Canara Robeco Emerging Equities808,1120.7140.08436,3882024-11-2085.18%
Invesco India Contra Fund480,1990.6583.72436,3882024-11-2010.04%
Canara Robeco Flexi Cap Fund453,9560.6878.69436,3882024-11-204.03%
PGIM India Midcap Opportunities Fund436,3880.7676.08436,3882024-11-200%
Canara Robeco Equity Hybrid Fund338,0000.658.59436,3882024-11-20-22.55%
Mirae Asset Aggressive Hybrid Fund270,0540.5747.08436,3882024-11-20-38.12%
Canara Robeco ELSS Tax Saver Fund215,3000.5237.32436,3882024-11-20-50.66%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)31.1544.5633.7226.2032.48
Diluted EPS (Rs.)31.1544.5633.7226.2032.48
Cash EPS (Rs.)38.1949.6138.1530.3835.71
Book Value[Excl.RevalReserv]/Share (Rs.)221.98215.82177.85150.16124.48
Book Value[Incl.RevalReserv]/Share (Rs.)221.98215.82177.85150.16124.48
Revenue From Operations / Share (Rs.)183.28202.83157.1892.84100.10
PBDIT / Share (Rs.)49.0564.9848.1636.8144.65
PBIT / Share (Rs.)42.0259.9243.7332.6441.42
PBT / Share (Rs.)41.6759.8643.7132.6241.32
Net Profit / Share (Rs.)31.1544.5633.7226.2032.48
NP After MI And SOA / Share (Rs.)31.1544.5633.7226.2032.48
PBDIT Margin (%)26.7632.0330.6439.6544.60
PBIT Margin (%)22.9229.5427.8235.1541.38
PBT Margin (%)22.7329.5127.8035.1341.27
Net Profit Margin (%)16.9921.9621.4528.2232.44
NP After MI And SOA Margin (%)16.9921.9621.4528.2232.44
Return on Networth / Equity (%)14.0320.6418.9617.4426.09
Return on Capital Employeed (%)16.6126.4623.3820.6131.44
Return On Assets (%)11.3717.9816.5815.5323.13
Total Debt / Equity (X)0.000.000.010.000.00
Asset Turnover Ratio (%)0.700.890.840.600.00
Current Ratio (X)4.534.524.646.157.22
Quick Ratio (X)3.623.653.595.016.17
Inventory Turnover Ratio (X)5.195.935.743.870.00
Dividend Payout Ratio (NP) (%)22.2714.5817.791.9031.55
Dividend Payout Ratio (CP) (%)18.1713.1015.721.6428.69
Earning Retention Ratio (%)77.7385.4282.2198.1068.45
Cash Earning Retention Ratio (%)81.8386.9084.2898.3671.31
Interest Coverage Ratio (X)140.041064.811913.391785.59420.18
Interest Coverage Ratio (Post Tax) (X)89.94731.191340.851271.98306.64
Enterprise Value (Cr.)15241.1218575.2120078.1814384.147854.69
EV / Net Operating Revenue (X)8.028.9112.4315.077.63
EV / EBITDA (X)29.9727.8140.5638.0217.12
MarketCap / Net Operating Revenue (X)8.038.9212.4215.087.69
Retention Ratios (%)77.7285.4182.2098.0968.44
Price / BV (X)6.638.3810.989.326.18
Price / Net Operating Revenue (X)8.038.9212.4215.087.69
EarningsYield0.020.020.010.010.04

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Vinati Organics Ltd as of November 21, 2024 is: 1,711.00

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, Vinati Organics Ltd is Overvalued by 4.25% compared to the current share price 1,787.00

Intrinsic Value of Vinati Organics Ltd as of November 21, 2024 is: 1,790.94

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, Vinati Organics Ltd is Undervalued by 0.22% compared to the current share price 1,787.00

Last 5 Year EPS CAGR: 4.67%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 31.08%, which is a positive sign.
  2. The company has higher reserves (1,217.85 cr) compared to borrowings (45.77 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (383.46 cr) and profit (314.23 cr) over the years.
  1. The stock has a high average Working Capital Days of 102.50, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 114.17, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Vinati Organics Ltd:
    1. Net Profit Margin: 16.99%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 16.61% (Industry Average ROCE: 6.66%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 14.03% (Industry Average ROE: 4.74%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 89.94
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 3.62
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 49.6 (Industry average Stock P/E: 16.53)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Vinati Organics Ltd. is a Public Limited Listed company incorporated on 15/06/1989 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L24116MH1989PLC052224 and registration number is 052224. Currently Company is involved in the business activities of Manufacture of organic and inorganic chemical compounds. Company’s Total Operating Revenue is Rs. 1615.51 Cr. and Equity Capital is Rs. 10.28 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Chemicals - Organic - Benzene BasedB-12 & B-13/1, MIDC Industrial Area, Raigad District Maharashtra 402309vinmhd@vinatiorganics.com
http://www.vinatiorganics.com
Management
NamePosition Held
Mr. Vinod Banwarilal SarafChairman
Ms. Vinati Saraf MutrejaManaging Director & CEO
Mrs. Mona M BhideIndependent Director
Dr.(Mrs.) M Lakshmi KantamIndependent Director
Mr. J C LaddhaIndependent Director
Ms. Viral Saraf MittalDirector - Corporate Strategy
Mr. Jayesh AsharWhole Time Director
Mr. Prashant BarveIndependent Director

FAQ

What is the latest intrinsic value of Vinati Organics Ltd?

The latest intrinsic value of Vinati Organics Ltd as on 21 November 2024 is ₹1711.00, which is 4.25% lower than the current market price of ₹1,787.00.

What is the Market Cap of Vinati Organics Ltd?

The Market Cap of Vinati Organics Ltd is 18,536 Cr..

What is the current Stock Price of Vinati Organics Ltd as on 21 November 2024?

The current stock price of Vinati Organics Ltd as on 21 November 2024 is ₹1,787.

What is the High / Low of Vinati Organics Ltd stocks in FY 2024?

In FY 2024, the High / Low of Vinati Organics Ltd stocks is 2,331/1,462.

What is the Stock P/E of Vinati Organics Ltd?

The Stock P/E of Vinati Organics Ltd is 49.6.

What is the Book Value of Vinati Organics Ltd?

The Book Value of Vinati Organics Ltd is 249.

What is the Dividend Yield of Vinati Organics Ltd?

The Dividend Yield of Vinati Organics Ltd is 0.39 %.

What is the ROCE of Vinati Organics Ltd?

The ROCE of Vinati Organics Ltd is 18.5 %.

What is the ROE of Vinati Organics Ltd?

The ROE of Vinati Organics Ltd is 13.8 %.

What is the Face Value of Vinati Organics Ltd?

The Face Value of Vinati Organics Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Vinati Organics Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE