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 Analysis

Outstanding track record with flawless balance sheet.


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

Stable Share Price: VINATIORGA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.1%

VINATIORGA

-1.5%

IN Chemicals

-1.1%

IN Market


1 Year Return

-8.1%

VINATIORGA

-17.2%

IN Chemicals

-31.7%

IN Market

Return vs Industry: VINATIORGA exceeded the Indian Chemicals industry which returned -17.6% over the past year.

Return vs Market: VINATIORGA exceeded the Indian Market which returned -32.1% over the past year.


Shareholder returns

VINATIORGAIndustryMarket
7 Day2.1%-1.5%-1.1%
30 Day-21.9%-23.3%-25.1%
90 Day-17.8%-20.6%-30.6%
1 Year-7.3%-8.1%-13.7%-17.2%-30.3%-31.7%
3 Year116.4%113.3%8.7%1.9%-20.1%-24.4%
5 Year162.4%154.6%55.4%42.1%-11.0%-15.7%

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 compared to its fair value and its price relative to the market?

23.78x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VINATIORGA (₹756.15) is trading above our estimate of fair value (₹196.36)

Significantly Below Fair Value: VINATIORGA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: VINATIORGA is poor value based on its PE Ratio (22.8x) compared to the Chemicals industry average (7.9x).

PE vs Market: VINATIORGA is poor value based on its PE Ratio (22.8x) compared to the Indian market (9.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate VINATIORGA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VINATIORGA is overvalued based on its PB Ratio (6.5x) compared to the IN Chemicals industry average (0.8x).


Next Steps

Future Growth

How is Vinati Organics forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.7%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Vinati Organics has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Vinati Organics performed over the past 5 years?

24.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VINATIORGA has high quality earnings.

Growing Profit Margin: VINATIORGA's current net profit margins (31.1%) are higher than last year (24.6%).


Past Earnings Growth Analysis

Earnings Trend: VINATIORGA's earnings have grown significantly by 24% per year over the past 5 years.

Accelerating Growth: VINATIORGA's earnings growth over the past year (35.7%) exceeds its 5-year average (24% per year).

Earnings vs Industry: VINATIORGA earnings growth over the past year (35.7%) exceeded the Chemicals industry 10%.


Return on Equity

High ROE: VINATIORGA's Return on Equity (28.5%) is considered high.


Next Steps

Financial Health

How is Vinati Organics's financial position?


Financial Position Analysis

Short Term Liabilities: VINATIORGA's short term assets (₹5.9B) exceed its short term liabilities (₹696.7M).

Long Term Liabilities: VINATIORGA's short term assets (₹5.9B) exceed its long term liabilities (₹692.5M).


Debt to Equity History and Analysis

Debt Level: VINATIORGA's debt to equity ratio (0.01%) is considered satisfactory.

Reducing Debt: VINATIORGA's debt to equity ratio has reduced from 45.6% to 0.01% over the past 5 years.

Debt Coverage: VINATIORGA's debt is well covered by operating cash flow (241402.7%).

Interest Coverage: VINATIORGA earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

0.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VINATIORGA's dividend (0.66%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.96%).

High Dividend: VINATIORGA's dividend (0.66%) is low compared to the top 25% of dividend payers in the Indian market (4.06%).


Stability and Growth of Payments

Stable Dividend: VINATIORGA's dividend payments have been volatile in the past 10 years.

Growing Dividend: VINATIORGA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (10.5%), VINATIORGA's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Vinati Mutreja (35yo)

1.83s

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

Compensation vs Market: Vinati's total compensation ($USD137.12K) is below average for companies of similar size in the Indian market ($USD470.86K).

Compensation vs Earnings: Vinati's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Vinod Saraf
Founder & Executive Chairman1.5yrs₹13.86m13.52% 11.0b
Vinati Mutreja
CEO, MD & Executive Director1.83yrs₹10.46m1.18% 957.4m
Nand Goyal
Chief Financial Officerno datano datano data
Jayesh Ashar
Chief Operating Officerno datano datano data
Milind Wagh
Company Secretary & Compliance Officer1.67yrs₹2.56mno data
Viral Mittal
Director of CSR & Corporate Strategy and Non-Independent Executive Directorno data₹5.90m1.01% 824.3m
Mahendra Churiwala
Senior Vice President of Marketingno datano datano data
Budhi Lathi
Executive President of Mahad Plantno datano datano data

1.8yrs

Average Tenure

35yo

Average Age

Experienced Management: VINATIORGA's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Vinod Saraf
Founder & Executive Chairman1.5yrs₹13.86m13.52% 11.0b
Vinati Mutreja
CEO, MD & Executive Director1.83yrs₹10.46m1.18% 957.4m
Viral Mittal
Director of CSR & Corporate Strategy and Non-Independent Executive Directorno data₹5.90m1.01% 824.3m
Adesh Gupta
Non-Executive Independent Director0.92yrno datano data
Sunil Saraf
Non-Independent & Non-Executive Director30.83yrs₹125.00kno data
Mannepalli Lakshmi Kantham
Non-Executive & Woman Independent Director0.92yrno datano data
Mona Bhide
Additional Non Executive Independent Director1.5yrs₹100.00kno data

1.5yrs

Average Tenure

56yo

Average Age

Experienced Board: VINATIORGA's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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: ₹81.280b
  • Shares outstanding: 102.78m
  • 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-acrylamido 2-methylpropane sulphonic acid, sodium salt of 2-acrylamido-2-methylpropane sulphonic acid, N-tertiary butyl acrylamide, and N-tertiary octyl acrylamide. The company also provides aromatics, including isobutyl benzene, which is used as raw material for manufacturing ibuprofen, an anti-inflammatory analgesic bulk drug; normal butyl benzene that is used as compound for chemical synthesis of a number of intermediates; and C-10 aromatic solvents that are used as high boiling point solvents. In addition, it offers methyl-4-tert butyl benzoate; para tertiary butyl benzoic acid; isobutylene, a carbon branched olefin; methanol for use as a chemical intermediate; high purity methyl tertiary butyl ether that is used as a solvent in organic synthesis, pharmaceutical synthesis, and synthesis of Grignard’s reagent; hexenes, which is used as low boiling point solvents, as thinners, for solvent extractions, in tire retreading, as octane booster for gasoline, and for manufacturing C-5/C-6 aliphatic petroleum; tertiary-butylamine; and polymers for use in industries, such as construction, ceramics, oil drilling, mining, leather, and paper. The company also exports its products primarily to the United States, Europe, and Asia. Vinati Organics Limited was founded in 1989 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 13:38
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
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.