Shares of Vinati Organics Limited closed today at a price of Rs 1,820.95 and have a market capitalization of Rs 18,700 crores. The stock reached its all-time high level in September 2019 which was Rs 2,511.
The scrip, as per the BSE data, has given multibagger returns of approximately 1,73,800 percent during a long-term period of 19 years ranging from Rs 1.05 in July 2004 to the current stock price levels. It means that if someone would have invested Rs 1 Lakh into the stock, it would have converted to around Rs 17.39 crores within a period of 19 years.
Vinati Organics Limited is a company present in the ‘specialty chemicals’ sector with the main focus on manufacturing organic intermediaries and specialty chemicals. The product portfolio of the company consists of Speciality Aromatics, Speciality Monomers, etc.
The latest financial reports exhibit an increase in the basic financial indicators such as the operating revenues as well as net profits with the former increasing from Rs 1,615 crores during FY21-22 to Rs 2,084 crores in FY22-23 and the latter going up from Rs 346 crores to Rs 457 crores keeping the timeframe the same.
Additionally, there have been decent improvements in the company’s profitability ratios with the return on equity (RoE) rising from 18.96 percent during FY21-22 to 20.64 percent in FY22-23 and the return on capital employed (RoCE), during the same period, moving from 23.38 percent to 26.46 percent.
In addition to the above, the company also turned debt-free during FY22-23 and also saw a marginal increase in the net profit margins moving from 21.45 percent during FY21-22 to 21.96 percent in FY22-23.
The latest shareholding data available for the March 2023 quarter represents that the promoters hold a 74.06 percent stake, and Foreign Institutional Investors (FIIs) hold a 4.47 percent stake in the company.
Written by Amit Madnani
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