Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 21 June, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 524200 | NSE: VINATIORGA

Fundamental Analysis of Vinati Organics Ltd

Basic Stock Data

Last Updated: June 20, 2024, 10:19 pm

Market Cap 19,801 Cr.
Current Price 1,932
High / Low1,985/1,462
Stock P/E61.2
Book Value 240
Dividend Yield0.36 %
ROCE18.6 %
ROE13.8 %
Face Value 1.00
PEG Ratio-96.21

Competitors of Vinati Organics Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Seya Industries Ltd 64.0 Cr. 24.132.0/17.8 3110.00 %0.32 %0.42 % 10.0
Industry Average64.00 Cr24.100.00311.000.00%0.32%0.42%10.00

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 Rs6.897.887.928.109.849.8511.2910.4010.188.107.057.4910.17

Last Updated: June 9, 2024, 1:41 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 1:53 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales5546967726316417301,1281,0299541,6162,0781,900
Expenses4345435804244235317036146011,1801,4821,430
Operating Profit120153192207218198425415353435596470
OPM %22%22%25%33%34%27%38%40%37%27%29%25%
Other Income49961231304526617239
Interest121810832221224
Depreciation101518192223273343455273
Profit before tax103129174187206203425425335449615432
Tax %33%33%33%29%32%29%34%21%20%23%26%25%
Net Profit6986116132140144282334269347458323
EPS in Rs6.978.7511.2212.7513.5914.0027.4832.4826.2033.7344.5631.46
Dividend Payout %18%17%16%16%2%16%13%17%23%19%16%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%31.99%-29.48%
Change in YoY Net Profit Growth (%)0.00%10.25%-21.09%-7.73%-3.20%92.98%-77.39%-37.90%48.46%2.99%-61.46%

Growth

Compounded Sales Growth
10 Years:14%
5 Years:23%
3 Years:26%
TTM:-11%
Compounded Profit Growth
10 Years:21%
5 Years:26%
3 Years:11%
TTM:-18%
Stock Price CAGR
10 Years:27%
5 Years:11%
3 Years:-2%
1 Year:-16%
Return on Equity
10 Years:24%
5 Years:23%
3 Years:21%
Last Year:23%

Last Updated: May 1, 2024, 11:11 pm

Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital10101010101010101010101010
Reserves1772313004245306707861,0411,2691,5331,8182,2092,304
Borrowings17323716265422154021800
Other Liabilities456780100104139168173163188243328328
Total Liabilities4055465525996878219801,2281,4431,7342,0902,5472,643
Fixed Assets1442903043273824684574757517578738821,050
CWIP5714102025735191315547221115
Investments813333621329622728998256315
Other Assets1962292352492782843564654346331,0711,1881,163
Total Assets4055465525996878219801,2281,4431,7342,0902,5472,643

Reserves and Borrowings Chart

Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 2092131113167130138200416219127578
Cash from Investing Activity -61-113-9-53-72-27-39-243-197-198-256-372
Cash from Financing Activity 7222-113-75-50-45-30-40-109-3-46-86
Net Cash Flow3029-16455970-8310918-175121

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-117.00-9.00127.00165.00216.00183.00421.00415.00351.00417.00596.00465.00

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 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days70756061668089797210610482
Inventory Days5960414455797964791157564
Days Payable121712172840613747624640
Cash Conversion Cycle116117898794119107106104158132107
Working Capital Days937752586211912111297138141100
ROCE %31%27%30%38%36%33%28%46%37%24%27%30%

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 Fund1,434,4900.77250.1453,9562024-06-20216%
Mirae Asset ELSS Tax Saver Fund1,083,3590.92188.88453,9562024-06-20138.65%
Mirae Asset Large Cap Fund909,9480.42158.64453,9562024-06-20100.45%
Canara Robeco Emerging Equities808,1120.7140.08453,9562024-06-2078.02%
Invesco India Contra Fund480,1990.6583.72453,9562024-06-205.78%
Canara Robeco Flexi Cap Fund453,9560.6878.69453,9562024-06-200%
PGIM India Midcap Opportunities Fund436,3880.7676.08453,9562024-06-20-3.87%
Canara Robeco Equity Hybrid Fund338,0000.658.59453,9562024-06-20-25.54%
Mirae Asset Aggressive Hybrid Fund270,0540.5747.08453,9562024-06-20-40.51%
Canara Robeco ELSS Tax Saver Fund215,3000.5237.32453,9562024-06-20-52.57%

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.)237.45215.82177.85150.16124.48
Book Value[Incl.RevalReserv]/Share (Rs.)237.45215.82177.85150.16124.48
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 (%)13.1220.6418.9617.4426.09
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) (%)0.0014.5817.791.9031.55
Dividend Payout Ratio (CP) (%)0.0013.1015.721.6428.69
Earning Retention Ratio (%)0.0085.4282.2198.1068.45
Cash Earning Retention Ratio (%)0.0086.9084.2898.3671.31
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 (%)0.0085.4182.2098.0968.44
Price / BV (X)6.198.3810.989.326.18
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: 2,034.24

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.

Undervalued: 5.29% compared to the current price 1932

Intrinsic Value: 2,021.30

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 4.62% compared to the current price ₹1932

Last 5 Year EPS CAGR: -0.64%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 32.25%, which is a positive sign.
  2. The company has higher reserves (1,105.42 cr) compared to borrowings (46.00 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (415.33 cr) and profit (306.92 cr) over the years.
  1. The stock has a high average Working Capital Days of 97.50, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 111.33, 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: 18.6%)
      • 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%: 13.12% (Industry Average ROE: 13.8%)
      • 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: 61.2 (Industry average Stock P/E: 58.7)
      • 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: 0.00
      • 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

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 402309shares@vinatiorganics.com
http://www.vinatiorganics.com
Management
NamePosition Held
Mr. Vinod Banwarilal SarafChairman
Ms. Vinati Saraf MutrejaManaging Director & CEO
Ms. Mona M BhideIndependent Director
Dr.(Mrs.) M Lakshmi KantamIndependent Director
Mr. Adesh Kumar GuptaIndependent Director
Mr. J C LaddhaIndependent Director
Ms. Viral Saraf MittalDirector - Corporate Strategy
Mr. Jayesh AsharDirector - Operations

FAQ

What is the latest fair value of Vinati Organics Ltd?

The latest fair value of Vinati Organics Ltd is ₹2034.24.

What is the Market Cap of Vinati Organics Ltd?

The Market Cap of Vinati Organics Ltd is 19,801 Cr..

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

The current stock price of Vinati Organics Ltd as on 21 June 2024 is ₹1,932.

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 1,985/1,462.

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

The Stock P/E of Vinati Organics Ltd is 61.2.

What is the Book Value of Vinati Organics Ltd?

The Book Value of Vinati Organics Ltd is 240.

What is the Dividend Yield of Vinati Organics Ltd?

The Dividend Yield of Vinati Organics Ltd is 0.36 %.

What is the ROCE of Vinati Organics Ltd?

The ROCE of Vinati Organics Ltd is 18.6 %.

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