Vinati Organics Ltd
Vinati Organics is engaged in manufacturing of speciality organic intermediates and monomers.
Key products
IBB: #1 manufacturer with a global market share of 65% as of FY20. # IBB is the raw material for ibuprofen and Vinati is one of the largest global producer of IBB. The current installed capacity is 25'000 MTPA. #
ATBS: #1 manufacturer with a global market share of 65% as of FY20. # Its a patented product with patent expiring in March 2022. # ATBS is used to make polymers used in water treatment, shale gas recovery, oil recovery, paints, deep oil & gas wells, etc. About 25-30% of ATBS demand comes from the gas and oil sector. # The current installed capacity is 40'000 MTPA #
Product selection criterion
Only produce niche chemical products with a target of 15-20% return on investment and a payback period of upto 5 years.
The process of production should be clean and green, with a potential to convert the generated residual waste into other products, thereby minimizing waste generated and also creating an additional revenue source. #
There should be a barrier to entry through a unique process or an integration with existing products (eg: manufacturing of butyl phenol which uses IB as raw material that is already being manufactured by the company). #
Company targets import substitute products (eg: Manufacturing of ATBS, butyl phenol, etc.)
Future product pipeline
Butyl phenol: This includes a basket of ~6 products used in sectors like agrochemicals, plastics, cosmetics, etc. These are mostly import substitution products and Vinati Organics has setup a capacity of 35'000 MTPA with peak potential revenues of 350-400 cr. Company will be competing with imported products coming from Korea and Singapore.# #
Miscellaneous:
Do not have any major dependence on China for input sourcing. Instead, China is a market where company sells IB #
Works on a cost plus model and can pass on raw material price increases to the end customers. #
Company has been unsuccessfully trying to make P-Amino Phenol (PAP), which is used in manufacturing paracetamol, using a cleaner and greener process since 1998. #
- Market Cap ₹ 14,414 Cr.
- Current Price ₹ 1,402
- High / Low ₹ 1,528 / 651
- Stock P/E 52.8
- Book Value ₹ 137
- Dividend Yield 0.39 %
- ROCE 36.4 %
- ROE 28.5 %
- Face Value ₹ 1.00
Pros
- Company has reduced debt.
- Company is almost debt free.
- Company has delivered good profit growth of 23.43% CAGR over last 5 years
- Company has a good return on equity (ROE) track record: 3 Years ROE 26.84%
Cons
- Stock is trading at 10.23 times its book value
Quarterly Results
Figures in Rs. Crores
Mar 2018 | Jun 2018 | Sep 2018 | Dec 2018 | Mar 2019 | Jun 2019 | Sep 2019 | Dec 2019 | Mar 2020 | Jun 2020 | Sep 2020 | Dec 2020 | |
---|---|---|---|---|---|---|---|---|---|---|---|---|
213 | 260 | 249 | 303 | 302 | 291 | 249 | 238 | 245 | 232 | 219 | 223 | |
148 | 173 | 158 | 197 | 177 | 171 | 145 | 155 | 144 | 134 | 135 | 151 | |
Operating Profit | 65 | 87 | 91 | 106 | 125 | 120 | 104 | 83 | 102 | 97 | 84 | 72 |
OPM % | 31% | 33% | 37% | 35% | 41% | 41% | 42% | 35% | 41% | 42% | 38% | 32% |
Other Income | 8 | 17 | 15 | 7 | 5 | 11 | 7 | 15 | 16 | 9 | 1 | 9 |
Interest | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Depreciation | 4 | 7 | 7 | 7 | 7 | 7 | 7 | 9 | 10 | 11 | 11 | 11 |
Profit before tax | 68 | 97 | 99 | 107 | 123 | 124 | 104 | 89 | 108 | 95 | 75 | 71 |
Tax % | 23% | 34% | 34% | 34% | 33% | 34% | -6% | 25% | 31% | 24% | 17% | 9% |
Net Profit | 52 | 64 | 65 | 71 | 83 | 82 | 110 | 67 | 75 | 72 | 62 | 64 |
EPS in Rs | 5.05 | 6.25 | 6.33 | 6.88 | 8.03 | 8.01 | 10.70 | 6.50 | 7.26 | 7.03 | 6.04 | 6.24 |
Notes | Notes | Notes | Notes | Notes | Notes | Notes | Notes | Notes | Notes | Notes | Notes |
Profit & Loss
Figures in Rs. Crores
Mar 2009 | Mar 2010 | Mar 2011 | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | TTM | |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
190 | 232 | 323 | 447 | 554 | 696 | 772 | 631 | 641 | 730 | 1,128 | 1,029 | 920 | |
157 | 179 | 253 | 352 | 434 | 543 | 580 | 424 | 423 | 531 | 703 | 614 | 565 | |
Operating Profit | 33 | 53 | 70 | 95 | 120 | 153 | 192 | 207 | 218 | 198 | 425 | 415 | 355 |
OPM % | 17% | 23% | 22% | 21% | 22% | 22% | 25% | 33% | 34% | 27% | 38% | 40% | 39% |
Other Income | 5 | 8 | 6 | 3 | 4 | 9 | 9 | 6 | 12 | 31 | 30 | 45 | 36 |
Interest | 3 | 4 | 7 | 9 | 12 | 18 | 10 | 8 | 3 | 2 | 2 | 2 | 0 |
Depreciation | 3 | 5 | 6 | 7 | 10 | 15 | 18 | 19 | 22 | 23 | 27 | 33 | 42 |
Profit before tax | 32 | 52 | 62 | 82 | 103 | 129 | 174 | 187 | 206 | 203 | 425 | 425 | 348 |
Tax % | 21% | 23% | 17% | 33% | 33% | 33% | 33% | 29% | 32% | 29% | 34% | 21% | |
Net Profit | 25 | 40 | 52 | 55 | 69 | 86 | 116 | 132 | 140 | 144 | 282 | 334 | 273 |
EPS in Rs | 2.55 | 4.06 | 5.28 | 5.56 | 6.97 | 8.75 | 11.22 | 12.75 | 13.59 | 14.00 | 27.48 | 32.48 | 26.57 |
Dividend Payout % | 10% | 12% | 12% | 18% | 18% | 17% | 16% | 16% | 2% | 16% | 13% | 17% |
Compounded Sales Growth | |
---|---|
10 Years: | 16% |
5 Years: | 6% |
3 Years: | 17% |
TTM: | -15% |
Compounded Profit Growth | |
---|---|
10 Years: | 24% |
5 Years: | 23% |
3 Years: | 33% |
TTM: | -20% |
Stock Price CAGR | |
---|---|
10 Years: | 45% |
5 Years: | 49% |
3 Years: | 51% |
1 Year: | 49% |
Return on Equity | |
---|---|
10 Years: | 28% |
5 Years: | 26% |
3 Years: | 27% |
Last Year: | 29% |
Balance Sheet
Figures in Rs. Crores
Mar 2009 | Mar 2010 | Mar 2011 | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Sep 2020 | |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | 10 | |
Reserves | 55 | 89 | 134 | 177 | 231 | 300 | 424 | 530 | 670 | 786 | 1,041 | 1,269 | 1,398 |
Borrowings | 51 | 63 | 77 | 173 | 237 | 162 | 65 | 42 | 2 | 15 | 4 | 0 | 0 |
22 | 23 | 37 | 45 | 67 | 80 | 100 | 104 | 139 | 168 | 173 | 163 | 173 | |
Total Liabilities | 137 | 185 | 258 | 405 | 546 | 552 | 599 | 687 | 821 | 980 | 1,228 | 1,443 | 1,582 |
45 | 80 | 111 | 144 | 290 | 304 | 327 | 382 | 468 | 457 | 475 | 751 | 731 | |
CWIP | 43 | 38 | 36 | 57 | 14 | 10 | 20 | 25 | 7 | 35 | 191 | 31 | 52 |
Investments | 0 | 0 | 3 | 8 | 13 | 3 | 3 | 3 | 62 | 132 | 96 | 227 | 413 |
49 | 67 | 107 | 196 | 229 | 235 | 249 | 278 | 284 | 356 | 465 | 434 | 386 | |
Total Assets | 137 | 185 | 258 | 405 | 546 | 552 | 599 | 687 | 821 | 980 | 1,228 | 1,443 | 1,582 |
Cash Flows
Figures in Rs. Crores
Mar 2009 | Mar 2010 | Mar 2011 | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | |
---|---|---|---|---|---|---|---|---|---|---|---|---|
30 | 29 | 31 | 20 | 92 | 131 | 113 | 167 | 130 | 138 | 200 | 416 | |
-40 | -35 | -39 | -61 | -113 | -9 | -53 | -72 | -27 | -39 | -243 | -197 | |
10 | 6 | 7 | 72 | 22 | -113 | -75 | -50 | -45 | -30 | -40 | -109 | |
Net Cash Flow | 1 | -0 | 0 | 30 | 2 | 9 | -16 | 45 | 59 | 70 | -83 | 109 |
Ratios
Figures in Rs. Crores
Mar 2009 | Mar 2010 | Mar 2011 | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | |
---|---|---|---|---|---|---|---|---|---|---|---|---|
ROCE % | 36% | 40% | 36% | 31% | 27% | 30% | 38% | 36% | 33% | 28% | 46% | 36% |
Debtor Days | 54 | 56 | 59 | 70 | 75 | 60 | 61 | 66 | 80 | 89 | 79 | 72 |
Inventory Turnover | 10.71 | 9.36 | 7.55 | 7.50 | 7.50 | 8.98 | 9.65 | 6.61 | 6.15 | 5.78 | 6.66 | 5.19 |
Documents
Add documentRecent announcements
- Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Outcome 1d
- Announcement under Regulation 30 (LODR)-Code of Conduct under SEBI (PIT) Regulations, 2015 18 Feb
- Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation 9 Feb
- Announcement under Regulation 30 (LODR)-Newspaper Publication 3 Feb
- VINATI ORGANICS LIMITED - UPDATE- Under Regulation 30 Of Securities And Exchange Board Of India (Listing Obligations And Disclosure Requirements) Regulations, 2015 3 Feb
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Annual reports
- Financial Year 2020 from bse
- Financial Year 2019 from bse
- Financial Year 2018 from bse
- Financial Year 2017 from bse
- Financial Year 2016 from bse
- Financial Year 2015 from bse
- Financial Year 2014 from bse
- Financial Year 2013 from bse
- Financial Year 2013 from nse
- Financial Year 2012 from bse
- Financial Year 2012 from nse
- Financial Year 2011 from bse
- Financial Year 2010 from bse
- Financial Year 2010 from nse