Vinati Organics Limited, one of the large-cap companies, operates in the specialty chemical industry and has a market valuation of 21,435.20 crore The firm is a top producer of organic and specialty chemical intermediates with a global market presence covering over 35 countries. It provides a wide variety of products to some of the major industrial and chemical enterprises in the Americas, Europe and Asia. Specialty aromatics, specialty monomers, butyl phenol, various specialty products and polymers are among the company’s product ranges. Vinati Organics is one of those multibagger stocks that Indian stock market observers have seen, but outside it, the firm has announced bonus shares only once since its listing, which has turned millionaire investors into millionaires. Let’s learn how
Vinati Organics Share Price History
Vinati Organics shares closed on BSE on Friday 2085.50 each, up 3.76% from the previous close 2009.85. On Friday, the stock recorded a total volume of 4,569 shares compared to the 20-day average volume of 7,242 shares. share price has increased 1.33 up to current market price as of 14 July 1995, which entails a massive multibagger return of 156,659.40% over the last 27 years. On BSE, the stock had touched a 52-week high 52-week low of 2,372.95 on (12/09/2022) and 1,675.00 (24/02/2022), indicates that the stock is trading up 12.11% from the high and 24.50% from the low at the current market price.
As per the data available on BSE, the company announced 1 bonus share in the ratio of 1:2 on 22 November 2007. In the initial stage, the stock price was 1.33, if a person had invested 1 lakh at that time would have given him a share of 75,187 shares. However, after the announcement of bonus shares of the company, the total share count would have reached 1,12,780 shares. As a result, at the current market price, the total shareholding—or 1,12,780 shares—is multiplied by 2085.50—You would have received your investment return 23.52 crores explains how, if company activities such as bonus shares are taken into account, a long-term investment can completely replace your initial investment.
Should you buy Vinati Organics shares?
Research analysts at broking firm Sharekhan recently stated that “Vinati Organics’ capex plan is to expand ATBS capacity, investment strategy in niche products (MEHQ, Guayacol and ISO Emilene) and proposed merger of VAPL (in Antioxidants). Benefit of further consolidation) ) Visibility improves on sustained high earnings growth with solicitation (expected 32% PAT CAGR in FY 2012-25 E) Stock price up 14% from 52-week high The decline provides a good entry for investors given the potential for sustained long-term high double-digit earnings growth.”
He further added in his research note that “Vinati Organics’ capex plan is to increase the capex capacity of ~Rs. ATBS by 50% to 60 ktpa (expected by December 2023) and new products (MEHQ and Guaiacol and Iso Amylene; by September-23) to Rs. 280 crores for entry in expected) and the company’s track-record of being the top player in its products (as in the case of ATBS/IBB) gives us confidence on longevity and sustained high revenue/earning growth.Veeral Additives Pvt Ltd (VAPL ) with Vinati (expected to be completed by the end of FY23) will provide synergy in terms of further integration of Butyl Phenol for Antioxidants, which will help in tapping the huge antioxidant market opportunity of Rs.10,000. cr. The merger of VAL is the key catalyst. The strong balance will support capex for capacity expansion and R&D pipeline of 10-12 products will aid in product development. We introduce our FY25 earnings estimates and 32 in FY22-25E We expect a strong RoE/RoCE of 25%/33% along with %PAT CAGR.”
They claimed that “Vinati Organics’ dominant global market share in the ATBS/IBB segment, niche product portfolio and massive export opportunities in the specialty chemical segment will drive long-term high double-digit earnings growth. Potentially higher ATBS margins and butyl The ramp-up of phenol will lead to a solid ROE/ROCE of 25%/33% along with a strong PAT CAGR of 32% in FY2022-FY2025E. Possible merger of Viral Additives (VAPL) with Vinati in FY2013 continues to be a major catalyst for the stock. Hence, we maintain buy on Vinati Organics with an unchanged PT of Rs.2,500. The stock trades at 31.5x of its FY2024E EPS and 26.4x of its FY2025E EPS.”
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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