About the Company:
Vinati Organics Ltd is a specialty chemical company producing aromatics, monomers,polymers and other speciality products.
Vinati Organics is a renowned specialty chemicals company in India, leading globally in manufacturing some of the key products.
Headquartered in Mumbai, the Company operates through its two manufacturing facilities with an integrated B2B business model to derive maximum operational
Company’s technical knowhow association with Institut Francais du Petrole(IFP), France, Saipem, Italy and National Chemical Laboratories (NCL), Pune have enabled them to launch new products and sustain market leadership in existing products.
Both the plants at Mahad (Raigad) and Lote (Ratnagiri), Maharashtra are certified (ISO) with national and international certifications.
Company’s focus on producing niche specialty chemicals addressing specific applications has allowed them to manufacture high-quality products with high purity levels.
Thus today the purity levels (99.97%) of Company’s products are among the best globally.
Having started modestly with 1000TPA production capacity for ATBS, today they are the largest producer in the world.
They are also the largest producer of IB(Isobutylene) and HPMTBE in India, largest producer of IBB (Isobutyl Benzene) and ATBS (2-Acrylamido 2 Methylpropane Sulfonic Acid)in the world.
Company has three major products – ATBS, IBB and IB which have been highly successful and export the products to more than 22 countries.
Also Watch (Detailed Analysis Inside this Video):
Positives for the Company:
- Has announced three of the largest capex investments (900 crores) in company’s history.
- All these facilities expected to become operational over FY2017-18 to late FY2019-20.
- With these expansion company will not only widen the product portfolio but will also double revenues by FY 2020-21.
- Company embarked on the path of building a 8 megawatt co-generation based captive power plant at our Lote facility, which is expected to provide Company
with a cost saving of H8 crores in power cost.
- Majority of the capex has been funded from internal accruals only, thus enabling the Company to maintain its zero-debt status.
- Since several players exited the market due to their inability to match Vinati Organics prices.
- Company is also eyeing greater market share abroad as one of its large competitors in the U.S. exits the business.
- Over the years company has been steadily increasing their marketshare.
- Consistent Dividend Payer.
- Moving forward I expect the free cash-flow to strengthen from FY2019-20 as the capex cycle subsides.
Current Market Price is around Rs.990 & Marketcap is around Rs.5200 cr.
Should give good return in the Long Term.
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