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Last Updated on: 18 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 524129 | NSE: VINYLINDIA

Vinyl Chemicals (I) Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 15, 2024, 7:27 pm

Market Cap 612 Cr.
Current Price 334
High / Low486/309
Stock P/E25.0
Book Value 62.4
Dividend Yield2.02 %
ROCE22.7 %
ROE16.7 %
Face Value 1.00
PEG Ratio1.62

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

View Share Price Target for Vinyl Chemicals (I) Ltd

Competitors of Vinyl Chemicals (I) Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gujarat Metallic Coal & Coke Ltd 5.94 Cr. 30.032.8/18.2 77.60.00 %0.37 %2.00 % 100
Gensol Engineering Ltd 2,888 Cr. 7631,377/70935.5 1550.00 %14.3 %20.1 % 10.0
Gagan Polycot India Ltd 0.86 Cr. 0.86/ 4.080.00 %81.2 %81.2 % 10.0
Fusion Micro Finance Ltd 1,788 Cr. 178675/178 2510.00 %14.1 %19.6 % 10.0
Five X Tradecom Ltd 0.99 Cr. 0.48/ 9.350.00 %0.00 %0.00 % 10.0
Industry Average5,811.54 Cr231.58156.22108.530.27%21.63%72.28%9.42

All Competitor Stocks of Vinyl Chemicals (I) Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales149.32262.17333.08120.50310.75324.17270.66106.93115.31154.40159.03168.27155.63
Expenses143.54257.67319.10104.62301.06311.30260.6297.41111.87149.87150.28159.63149.65
Operating Profit5.784.5013.9815.889.6912.8710.049.523.444.538.758.645.98
OPM %3.87%1.72%4.20%13.18%3.12%3.97%3.71%8.90%2.98%2.93%5.50%5.13%3.84%
Other Income2.670.200.293.555.000.700.160.991.260.820.641.730.78
Interest0.020.060.050.030.090.150.170.940.010.020.010.010.01
Depreciation0.000.000.000.000.020.030.020.030.030.020.020.030.02
Profit before tax8.434.6414.2219.4014.5813.3910.019.544.665.319.3610.336.73
Tax %25.50%25.43%25.32%25.21%25.10%24.94%26.37%23.48%24.89%26.93%25.96%27.11%26.89%
Net Profit6.283.4610.6214.5110.9210.057.377.303.503.886.937.534.92
EPS in Rs3.421.895.797.915.965.484.023.981.912.123.784.112.68

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
Sales2442934423352933754833724048651,013597637
Expenses235282424326283361469366389821966572609
Operating Profit8101899141461544472528
OPM %3%4%4%3%3%4%3%2%4%5%5%4%4%
Other Income1113441402244
Interest0000000000100
Depreciation0000000000000
Profit before tax9111912131814101547483032
Tax %33%34%34%35%35%36%37%25%26%25%25%26%
Net Profit67128912971135362223
EPS in Rs3.244.086.734.364.766.364.834.076.1919.0119.4411.9112.69
Dividend Payout %25%24%22%34%38%38%50%59%60%52%51%57%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)16.67%71.43%-33.33%12.50%33.33%-25.00%-22.22%57.14%218.18%2.86%-38.89%
Change in YoY Net Profit Growth (%)0.00%54.76%-104.76%45.83%20.83%-58.33%2.78%79.37%161.04%-215.32%-41.75%

Vinyl Chemicals (I) 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:7%
5 Years:4%
3 Years:14%
TTM:-2%
Compounded Profit Growth
10 Years:11%
5 Years:17%
3 Years:20%
TTM:11%
Stock Price CAGR
10 Years:17%
5 Years:39%
3 Years:9%
1 Year:-22%
Return on Equity
10 Years:23%
5 Years:25%
3 Years:29%
Last Year:17%

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 Capital2222222222222
Reserves18243341465457596694111115113
Borrowings0000000001000
Other Liabilities478069805611584942006562188119
Total Liabilities68106104123104171144156269162176305234
Fixed Assets0000000000111
CWIP0000000000000
Investments8594539342475578405779
Other Assets6010095786613714110821484135247154
Total Assets68106104123104171144156269162176305234

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +72034-7-3-21511117-2036
Cash from Investing Activity +-73-3-3310834-44-6-2140-14
Cash from Financing Activity +00-2-3-3-4-5-5-4-7-19-18
Net Cash Flow06-4-2-01720-1114

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow8.0010.0018.009.009.0014.0014.006.0015.0043.0047.0025.00

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 Days506640545775484510051165
Inventory Days334833292357535070243378
Days Payable699953886911663951882622118
Cash Conversion Cycle141520-5111739-1-1732225
Working Capital Days171619-41119362272632
ROCE %44%45%57%24%21%30%24%14%23%55%44%23%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters50.62%50.62%50.62%50.62%50.62%50.41%50.41%50.41%50.41%50.41%50.41%50.41%
FIIs0.00%0.35%0.07%0.16%0.42%1.39%1.64%1.20%0.00%0.00%0.00%0.09%
DIIs0.01%0.00%0.01%0.00%0.01%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public49.37%49.03%49.30%49.22%48.95%48.20%47.95%48.37%49.58%49.57%49.57%49.49%
No. of Shareholders28,58730,79533,59834,47434,13239,67042,94543,79245,13046,19545,81944,460

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)11.9119.4419.016.194.07
Diluted EPS (Rs.)11.9119.4419.016.194.07
Cash EPS (Rs.)11.9619.4919.016.194.07
Book Value[Excl.RevalReserv]/Share (Rs.)63.6661.7752.3537.1233.33
Book Value[Incl.RevalReserv]/Share (Rs.)63.6661.7752.3537.1233.33
Dividend / Share (Rs.)6.7510.0010.003.752.40
Revenue From Operations / Share (Rs.)325.45551.96471.58220.32202.97
PBDIT / Share (Rs.)16.2526.7025.548.345.48
PBIT / Share (Rs.)16.2026.6425.548.345.47
PBT / Share (Rs.)16.1725.9125.458.315.45
Net Profit / Share (Rs.)11.9119.4319.016.194.07
PBDIT Margin (%)4.994.835.413.782.69
PBIT Margin (%)4.974.825.413.782.69
PBT Margin (%)4.964.695.393.772.68
Net Profit Margin (%)3.653.524.032.802.00
Return on Networth / Equity (%)18.7031.4536.3016.6712.19
Return on Capital Employeed (%)25.2942.8448.4322.1216.25
Return On Assets (%)7.1520.2921.564.224.79
Long Term Debt / Equity (X)0.000.000.010.010.01
Total Debt / Equity (X)0.000.000.010.010.01
Asset Turnover Ratio (%)2.486.004.021.902.49
Current Ratio (X)1.622.832.471.341.65
Quick Ratio (X)0.971.461.660.971.14
Dividend Payout Ratio (NP) (%)83.9451.4419.7238.7659.00
Dividend Payout Ratio (CP) (%)83.5551.2919.7238.7458.94
Earning Retention Ratio (%)16.0648.5680.2861.2441.00
Cash Earning Retention Ratio (%)16.4548.7180.2861.2641.06
Interest Coverage Ratio (X)611.0036.23283.98329.54196.40
Interest Coverage Ratio (Post Tax) (X)448.6227.37212.29245.55146.80
Enterprise Value (Cr.)574.53612.80480.31201.5265.67
EV / Net Operating Revenue (X)0.960.600.550.490.17
EV / EBITDA (X)19.2712.5110.2513.176.54
MarketCap / Net Operating Revenue (X)0.970.600.550.520.20
Retention Ratios (%)16.0548.5580.2761.2340.99
Price / BV (X)4.975.425.013.131.25
Price / Net Operating Revenue (X)0.970.600.550.520.20
EarningsYield0.030.050.070.050.09

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Vinyl Chemicals (I) Ltd as of November 18, 2024 is: 265.78

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 18, 2024, Vinyl Chemicals (I) Ltd is Overvalued by 20.43% compared to the current share price 334.00

Intrinsic Value of Vinyl Chemicals (I) Ltd as of November 18, 2024 is: 306.81

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 18, 2024, Vinyl Chemicals (I) Ltd is Overvalued by 8.14% compared to the current share price 334.00

Last 5 Year EPS CAGR: 15.44%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 33.67%, which is a positive sign.
  2. The stock has a low average Working Capital Days of 15.25, which is a positive sign.
  3. The company has higher reserves (63.92 cr) compared to borrowings (0.08 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (410.85 cr) and profit (21.38 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 11.92, 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 Vinyl Chemicals (I) Ltd:
    1. Net Profit Margin: 3.65%
      • 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: 25.29% (Industry Average ROCE: 20.76%)
      • 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%: 18.7% (Industry Average ROE: 62.16%)
      • 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): 448.62
      • 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: 0.97
      • 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: 25 (Industry average Stock P/E: 90.61)
      • 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

Vinyl Chemicals (I) Ltd. is a Public Limited Listed company incorporated on 15/05/1986 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L24100MH1986PLC039837 and registration number is 039837. Currently Company is involved in the business activities of Wholesale of industrial chemicals,. Company’s Total Operating Revenue is Rs. 865.07 Cr. and Equity Capital is Rs. 1.83 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Chemicals - Organic - OthersRegent Chambers, Mumbai Maharashtra 400021cs.vinylchemicals@pidilite.com
http://www.vinylchemicals.com
Management
NamePosition Held
Mr. M B ParekhChairman & Managing Director
Mr. N K ParekhDirector
Mr. A B ParekhDirector
Mr. P D ShahDirector
Mr. L ViswanathanDirector
Mrs. Shailashri BhaskarDirector

FAQ

What is the latest intrinsic value of Vinyl Chemicals (I) Ltd?

The latest intrinsic value of Vinyl Chemicals (I) Ltd as on 18 November 2024 is ₹265.78, which is 20.43% lower than the current market price of ₹334.00.

What is the Market Cap of Vinyl Chemicals (I) Ltd?

The Market Cap of Vinyl Chemicals (I) Ltd is 612 Cr..

What is the current Stock Price of Vinyl Chemicals (I) Ltd as on 18 November 2024?

The current stock price of Vinyl Chemicals (I) Ltd as on 18 November 2024 is ₹334.

What is the High / Low of Vinyl Chemicals (I) Ltd stocks in FY 2024?

In FY 2024, the High / Low of Vinyl Chemicals (I) Ltd stocks is 486/309.

What is the Stock P/E of Vinyl Chemicals (I) Ltd?

The Stock P/E of Vinyl Chemicals (I) Ltd is 25.0.

What is the Book Value of Vinyl Chemicals (I) Ltd?

The Book Value of Vinyl Chemicals (I) Ltd is 62.4.

What is the Dividend Yield of Vinyl Chemicals (I) Ltd?

The Dividend Yield of Vinyl Chemicals (I) Ltd is 2.02 %.

What is the ROCE of Vinyl Chemicals (I) Ltd?

The ROCE of Vinyl Chemicals (I) Ltd is 22.7 %.

What is the ROE of Vinyl Chemicals (I) Ltd?

The ROE of Vinyl Chemicals (I) Ltd is 16.7 %.

What is the Face Value of Vinyl Chemicals (I) Ltd?

The Face Value of Vinyl Chemicals (I) 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 Vinyl Chemicals (I) 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