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Last Updated on: 27 February, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 524200 | NSE: VINATIORGA

Fundamental Analysis of Vinati Organics Ltd

About the Company - Vinati Organics Ltd

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

Vinati Organics Ltd. Share Price Update

Share PriceValue
Today₹1,669.55
Previous Day₹1,675.40

Basic Stock Data of Vinati Organics Ltd

Market Cap 17,112 Cr.
Current Price 1,665
High / Low2,034/1,578
Stock P/E49.1
Book Value 225
Dividend Yield0.42 %
ROCE30.4 %
ROE22.6 %
Face Value 1.00

Data Source: screener.in

Competitors of Vinati Organics Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Seya Industries Ltd 66.5 Cr. 25.032.0/15.6 3120.00 %1.62 %2.93 % 10.0
Industry Average66.50 Cr25.000.00312.000.00%1.62%2.93%10.00

Vinati Organics Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales223280386374369486506566517503431463448
Expenses151181285273276347375418369351322358333
Operating Profit729910210193139131148148152109105115
OPM %32%35%26%27%25%29%26%26%29%30%25%23%26%
Other Income97181415151920111715119
Interest0000000000011
Depreciation11111111121213131713131719
Profit before tax71951081039614213615514215611197103
Tax %9%25%25%21%13%29%26%25%25%26%25%25%25%
Net Profit6471818183101101116107115837277
EPS in Rs6.246.897.887.928.109.849.8511.2910.4011.238.107.057.49

Vinati Organics Ltd Quarterly Chart

Vinati Organics Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales4475546967726316417301,1281,0299541,6162,0781,845
Expenses3524345435804244235317036146011,1801,4821,365
Operating Profit95120153192207218198425415353435596481
OPM %21%22%22%25%33%34%27%38%40%37%27%29%26%
Other Income349961231304526617252
Interest9121810832221222
Depreciation7101518192223273343455263
Profit before tax82103129174187206203425425335449615467
Tax %33%33%33%33%29%32%29%34%21%20%23%26%
Net Profit556986116132140144282334269347458348
EPS in Rs5.566.978.7511.2212.7513.5914.0027.4832.4826.2033.7344.5633.87
Dividend Payout %18%18%17%16%16%2%16%13%17%23%19%16%

Vinati Organics Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth
Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)25.45%24.64%34.88%13.79%6.06%2.86%95.83%18.44%-19.46%29.00%31.99%
Change in YoY Net Profit Growth (%)0.00%-0.82%10.25%-21.09%-7.73%-3.20%92.98%-77.39%-37.90%48.46%2.99%

Vinati Organics Ltd 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:30%
5 Years:17%
3 Years:6%
1 Year:-10%
Return on Equity
10 Years:24%
5 Years:23%
3 Years:21%
Last Year:23%

Vinati Organics Ltd 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

Vinati Organics Ltd Reserves and Borrowings Chart

Vinati Organics Ltd 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

Vinati Organics Ltd 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%

Vinati Organics Ltd Financial Efficiency Indicators Chart

Vinati Organics Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters74.06%74.06%74.06%74.06%74.06%74.06%74.06%74.06%74.06%74.06%74.06%74.06%
FIIs3.50%4.39%4.45%4.53%4.58%4.66%4.76%4.81%4.79%4.47%4.64%4.71%
DIIs7.29%6.82%6.87%7.54%7.85%8.11%7.99%7.88%7.90%8.11%8.18%7.55%
Public15.15%14.73%14.62%13.87%13.51%13.17%13.19%13.25%13.26%13.36%13.12%13.69%
No. of Shareholders59,40765,11382,58175,56072,53972,29875,75980,64584,40490,93493,9891,07,022

Vinati Organics Ltd Shareholding Pattern Chart

No. of Vinati Organics Ltd Shareholders

Vinati Organics Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Mirae Asset Large & Midcap Fund14344900.77250.1
Mirae Asset ELSS Tax Saver Fund10833590.92188.88
Mirae Asset Large Cap Fund9099480.42158.64
Canara Robeco Emerging Equities8081120.7140.08
Invesco India Contra Fund4801990.6583.72
Canara Robeco Flexi Cap Fund4539560.6878.69
PGIM India Midcap Opportunities Fund4363880.7676.08
Canara Robeco Equity Hybrid Fund3380000.658.59
Mirae Asset Aggressive Hybrid Fund2700540.5747.08
Canara Robeco ELSS Tax Saver Fund2153000.5237.32

Vinati Organics Ltd ROCE Trend

Vinati Organics Ltd EPS Trend

Vinati Organics Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.00
Basic EPS (Rs.)44.5633.7226.2032.48
Diluted EPS (Rs.)44.5633.7226.2032.48
Cash EPS (Rs.)49.6138.1530.3835.71
Book Value[Excl.RevalReserv]/Share (Rs.)215.82177.85150.16124.48
Book Value[Incl.RevalReserv]/Share (Rs.)215.82177.85150.16124.48
Revenue From Operations / Share (Rs.)202.83157.1892.84100.10
PBDIT / Share (Rs.)64.9848.1636.8144.65
PBIT / Share (Rs.)59.9243.7332.6441.42
PBT / Share (Rs.)59.8643.7132.6241.32
Net Profit / Share (Rs.)44.5633.7226.2032.48
NP After MI And SOA / Share (Rs.)44.5633.7226.2032.48
PBDIT Margin (%)32.0330.6439.6544.60
PBIT Margin (%)29.5427.8235.1541.38
PBT Margin (%)29.5127.8035.1341.27
Net Profit Margin (%)21.9621.4528.2232.44
NP After MI And SOA Margin (%)21.9621.4528.2232.44
Return on Networth / Equity (%)20.6418.9617.4426.09
Return on Capital Employeed (%)26.4623.3820.6131.44
Return On Assets (%)17.9816.5815.5323.13
Total Debt / Equity (X)0.000.010.000.00
Asset Turnover Ratio (%)0.890.840.600.00
Current Ratio (X)4.524.646.157.22
Quick Ratio (X)3.653.595.016.17
Inventory Turnover Ratio (X)5.935.743.870.00
Dividend Payout Ratio (NP) (%)14.5817.791.9031.55
Dividend Payout Ratio (CP) (%)13.1015.721.6428.69
Earning Retention Ratio (%)85.4282.2198.1068.45
Cash Earning Retention Ratio (%)86.9084.2898.3671.31
Interest Coverage Ratio (X)1064.811913.391785.59420.18
Interest Coverage Ratio (Post Tax) (X)731.191340.851271.98306.64
Enterprise Value (Cr.)18575.2120078.1814384.147854.69
EV / Net Operating Revenue (X)8.9112.4315.077.63
EV / EBITDA (X)27.8140.5638.0217.12
MarketCap / Net Operating Revenue (X)8.9212.4215.087.69
Retention Ratios (%)85.4182.2098.0968.44
Price / BV (X)8.3810.989.326.18
Price / Net Operating Revenue (X)8.9212.4215.087.69
EarningsYield0.020.010.010.04

Vinati Organics Ltd Profitability Ratios (%)

Vinati Organics Ltd Liquidity Ratios

Vinati Organics Ltd Liquidity Ratios (%)

Vinati Organics Ltd Interest Coverage Ratios (X)

Vinati Organics Ltd Valuation Ratios

Fair Value / Intrinsic Value of Vinati Organics Ltd

Fair Value: ₹2507.22

The stock is undervalued by 50.58% compared to the current price ₹1665

*Investments are subject to market risks

Strength and Weakness of Vinati Organics Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 32.25%, which is a positive sign.
  2. The company has higher reserves (1,022.46 cr) compared to borrowings (55.38 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (417.77 cr) and profit (292.31 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 44.43 and average Dividend Yield of 33.47%.
  2. The stock has a high average Working Capital Days of 97.50, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 111.33, which may not be favorable.

Should I Buy Vinati Organics Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Vinati Organics Ltd:
    1. Net Profit Margin: 21.96%
      • 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: 26.46% (Industry Average ROCE: 1.62%)
      • 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. Interest Coverage Ratio (Post Tax): 731.19
      • 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.
    4. Quick Ratio: 3.65
      • 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.
    5. ✗ Stock P/E: 49.3 (Industry average Stock P/E: 0)
      • 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.
    6. ✓ 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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