**Vinati Organics Q3FY20 (Cons – Un Audited)**
Share price – 2,221
Total Revenue from ops at 238.4 Cr
249.1 Cr (-4.48%) YoY |303.0 Cr (-21.46%) QoQ
9 months ending 783.5 Cr vs. 811.5 Cr (-3.44%)
Net Profit of 66.8 Cr
110.01 Cr (-40.01%) YoY 70.7 Cr (-5.72%) QoQ
9 months ending 259.1 Crs vs 199.9 Cr (30.17%)
EPS (in Rs) 13.00
21.41 YoY | 13.75 QoQ
9 months ending EPS: 50.44 vs. 38.91
View: Result is below expectation. YoY and QoQ revenue declined but profit significantly down in YoY.
**Business Updates & Highlights**
*Financial**
EBITDA in Q3FY20 is around INR 98.2 Cr Vs. 110.9 Cr in Q3FY19 therefore declined by 11%. 9MFY20 EBITDA is around INR 340.9 Cr Vs. 323.4 Cr in 9MFY19.
**Financial**
ROE and ROCE is around 29% and 46% respectively and book value per share is around INR 234 and share is trading around 9.5x of its book value. Company is currently trading at annualized PE of around 35 which is high as per Industry benchmark. Promoter holding in the company is around 74% which is very fair and stable. FIIs and mutual fund hold around 5.1% and 5.2% respectively. Company is virtually debt free (Positive). Operating profit margin is somewhere around 36%. Debtor realization period is around 3 months average which is slightly high.
** Share view**: Share price high 2,511 (52 week) and now 2,221. Established in 1989, Vinati Organics Limited (VOL) is a specialty chemical company, focusing on manufacturing specialty chemicals and organic intermediaries.
Short term outlook is bearish due to result not good and supported the price.
Opportunities: Vinati organics has different business vertical and diversified product eg. Speciality monomers, speciality aromatics etc. Company has two plants, both situated in Maharashtra at Mahad (Raigad) and Lote Parashuram (Ratnagiri). Their plants are ISO 9001: 2008, ISO 14001: 2004 and ISO 18001:2007 certified for following quality control, environment, and health and safety.
Risk: Growth rate is concern.
Disclaimer: Views are shared based on market research and study and personal in nature. Others can take the different view and opinions. Please do the thoroughly study before enter or exit the shares.
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