NSEI:VINATIORGA

Stock Analysis Report

Executive Summary

Vinati Organics Limited, a specialty chemical company, engages in the manufacture and sale of specialty organic intermediaries and monomers primarily in India.

Snowflake

Fundamentals

Flawless balance sheet with outstanding track record.


Similar Companies

Share Price & News

How has Vinati Organics's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.2%

NSEI:VINATIORGA

-1.2%

IN Chemicals

-2.1%

IN Market


1 Year Return

55.2%

NSEI:VINATIORGA

-5.6%

IN Chemicals

-14.7%

IN Market

VINATIORGA outperformed the Chemicals industry which returned -5.6% over the past year.

VINATIORGA outperformed the Market in India which returned -14.7% over the past year.


Share holder returns

VINATIORGAIndustryMarket
7 Day-2.2%-1.2%-2.1%
30 Day10.6%-0.5%-3.9%
90 Day6.1%-5.6%-10.1%
1 Year55.7%55.2%-4.6%-5.6%-12.9%-14.7%
3 Year241.5%238.6%31.4%27.4%17.7%11.5%
5 Year402.9%390.8%120.1%108.1%35.4%22.5%

Price Volatility Vs. Market

How volatile is Vinati Organics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Vinati Organics undervalued based on future cash flows and its price relative to the stock market?

35.17x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Vinati Organics's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Vinati Organics's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Vinati Organics is overvalued based on earnings compared to the IN Chemicals industry average.

Vinati Organics is overvalued based on earnings compared to the India market.


Price Based on Expected Growth

Vinati Organics is poor value based on expected growth next year.


Price Based on Value of Assets

Vinati Organics is overvalued based on assets compared to the IN Chemicals industry average.


Next Steps

Future Growth

How is Vinati Organics expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

12.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Vinati Organics's revenue is expected to grow significantly at over 20% yearly.

Vinati Organics's earnings are expected to grow by 12.1% yearly, however this is not considered high growth (20% yearly).

Vinati Organics's revenue growth is expected to exceed the India market average.

Vinati Organics's earnings growth is positive but not above the India market average.

Vinati Organics's earnings growth is expected to exceed the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Vinati Organics is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Vinati Organics performed over the past 5 years?

19.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Vinati Organics's year on year earnings growth rate has been positive over the past 5 years.

Vinati Organics's 1-year earnings growth exceeds its 5-year average (69.8% vs 19.8%)

Vinati Organics's earnings growth has exceeded the IN Chemicals industry average in the past year (69.8% vs 9.2%).


Return on Equity

Vinati Organics has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Vinati Organics used its assets more efficiently than the IN Chemicals industry average last year based on Return on Assets.


Return on Capital Employed

Vinati Organics has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Vinati Organics's financial position?


Financial Position Analysis

Vinati Organics is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Vinati Organics's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Vinati Organics's level of debt (0.4%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (52% vs 0.4% today).

Debt is well covered by operating cash flow (5440.6%, greater than 20% of total debt).

Vinati Organics earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 144.2x debt.


Next Steps

Dividend

What is Vinati Organics's current dividend yield, its reliability and sustainability?

0.33%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Vinati Organics's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.65%).

Vinati Organics's dividend is below the markets top 25% of dividend payers in India (2.64%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (8.4x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Vinati Organics's salary, the management and board of directors tenure and is there insider trading?

1.2yrs

Average management tenure


CEO

Vinati Mutreja (35yo)

1.2yrs

Tenure

₹10,462,000

Compensation

Ms. Vinati Saraf Mutreja served as a Consultant for Mercer Oliver Wyman, a New York based consulting firm specialising in financial services and risk management. Ms. Mutreja joined Vinati Organics Limited ...


CEO Compensation Analysis

Vinati's remuneration is lower than average for companies of similar size in India.

Vinati's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.2yrs

Average Tenure

35yo

Average Age

The average tenure for the Vinati Organics management team is less than 2 years, this suggests a new team.


Board Age and Tenure

0.8yrs

Average Tenure

59.5yo

Average Age

The average tenure for the Vinati Organics board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Vinod Saraf (69yo)

    Founder & Executive Chairman

    • Tenure: 0.8yrs
    • Compensation: ₹13.86m
  • Budhi Lathi

    Executive President of Mahad Plant

    • Tenure: 0.0yrs
  • Nand Goyal

    Chief Financial Officer

    • Tenure: 0.0yrs
  • Mahendra Churiwala

    Senior Vice President of Marketing

    • Tenure: 0.0yrs
  • Jayesh Ashar

    Chief Operating Officer

    • Tenure: 0.0yrs
  • Vinati Mutreja (35yo)

    CEO, MD & Executive Director

    • Tenure: 1.2yrs
    • Compensation: ₹10.46m
  • Viral Mittal (33yo)

    Director of CSR & Corporate Strategy and Non-Independent Executive Director

    • Tenure: 0.0yrs
    • Compensation: ₹5.90m
  • Milind Wagh

    Company Secretary & Compliance Officer

    • Tenure: 1.0yrs
    • Compensation: ₹2.56m

Board Members

  • Adesh Gupta (63yo)

    Non-Executive Independent Director

    • Tenure: 0.3yrs
  • Radhakrishna Saraswat (81yo)

    Independent Non-Executive Director

    • Tenure: 8.6yrs
    • Compensation: ₹275.00k
  • Vinod Saraf (69yo)

    Founder & Executive Chairman

    • Tenure: 0.8yrs
    • Compensation: ₹13.86m
  • Sunil Saraf (53yo)

    Non-Independent & Non-Executive Director

    • Tenure: 30.2yrs
    • Compensation: ₹125.00k
  • Vinati Mutreja (35yo)

    CEO, MD & Executive Director

    • Tenure: 1.2yrs
    • Compensation: ₹10.46m
  • Viral Mittal (33yo)

    Director of CSR & Corporate Strategy and Non-Independent Executive Director

    • Tenure: 0.0yrs
    • Compensation: ₹5.90m
  • Mannepalli Lakshmi Kantham (64yo)

    Non-Executive & Woman Independent Director

    • Tenure: 0.3yrs
  • Mona Bhide (56yo)

    Additional Non Executive Independent Director

    • Tenure: 0.8yrs
    • Compensation: ₹100.00k

Company Information

Vinati Organics Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Vinati Organics Limited
  • Ticker: VINATIORGA
  • Exchange: NSEI
  • Founded: 1989
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: ₹105.722b
  • Shares outstanding: 51.39m
  • Website: https://www.vinatiorganics.com

Number of Employees


Location

  • Vinati Organics Limited
  • Parinee Crescenzo, 1102
  • 11th Floor, 'A' Wing
  • Mumbai
  • Maharashtra
  • 400051
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
524200BSE (Mumbai Stock Exchange)YesEquity SharesININROct 2004
VINATIORGANSEI (National Stock Exchange of India)YesEquity SharesININROct 2004

Biography

Vinati Organics Limited, a specialty chemical company, engages in the manufacture and sale of specialty organic intermediaries and monomers primarily in India. It offers specialty monomers comprising 2-acr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/25 12:47
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.