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Vinati Organic - Fundamental Analysis comments

Discussion in 'Fundamental Analysis' started by kaushall1, Dec 31, 2012.

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  1. kaushall1

    kaushall1 New Member

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    Hi Shabbir,

    I am holding Vinati Organic since @78. Although its almost close to 100% gain I am expecting it to grow higher in future.

    After last year expansion completed I believe they're going to show good performance.

    Would you please provide your valuable comments on fundamental of this stock ? I believe you do fundamental analysis for stocks that we're targeting to hold for 3+ years..

    /Kaushal
     
    kaushall1, Dec 31, 2012
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  2. shabbir

    shabbir Administrator Staff Member

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    Yes. Any stock you plan to hold for more than couple of years is good to focus fundamentally and though I don't track this stock but this stock is a multibagger technically as well and so it goes into my list of tracking stocks now.

    Now coming to fundamentals of this company there are lots of positives in this stock. All numbers are from money control.

    Sales has grown great in last 5 years from
    1. 146.33
    2. 195.82
    3. 237.43
    4. 325.25
    5. 447.46

    Which is what I really prefer as a touchstone to good fundamentals.

    So once the sales is growing and other factors would always be growing and that is the case with the company.

    One thing is Debt is the company has also grown and so keep an eye on that number and make sure that is always under control for this ride to continue.
     
    shabbir, Dec 31, 2012
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  3. kaushall1

    kaushall1 New Member

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    I guess DEBT increased as a part of expansion, Vinati Organics will become the largest manufacturer of ATBS in the world. The reason given for expansion is "Owing to the increased demand, we have now decided to expand our ATBS capacity from existing 10,000 metric tons to 18,000 metric tons."

    ATBS would be operational by May 2011.

    DEBT:
    The total CAPEX required is 120 crores, out of that about 50 crores is required for the ATBS expansion, 32 crores for the cogeneration, and the remaining 40 crores is for the Diacetone Acrylamide, TBA, TOA, and Vintreat-Cap polymers. And see the debt-equity ratio is quite low, so mostly we will be taking on debt to fund that and the remaining will be through internal accruals and maybe some fresh equity.


    Projected revenues "The increased capacities and new facilities are expected to yield additional revenues of about 150 crores p.a."

    Just FYI, ATBS realized rate is 150 per kg.

    FYI: Above information has been captured from http://www.valuepickr.com/forum/not-so-hidden-gems/407234826. In case someone wants to study more.

    Btw, Shabbir, Thanks for providing comments and adding it to your tracking list. If possible please share the list of stock you've added recenlty in your tracking.

    Thanks,
    /Kaushal
     
    kaushall1, Dec 31, 2012
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  4. shabbir

    shabbir Administrator Staff Member

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    shabbir, Jan 1, 2013
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  5. kaushall1

    kaushall1 New Member

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    Great.. Thanks Shabbir.
    Appreciated yr replies..
     
    kaushall1, Jan 1, 2013
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  6. shabbir

    shabbir Administrator Staff Member

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    The pleasure is all mine.
     
    shabbir, Jan 1, 2013
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  7. kaushall1

    kaushall1 New Member

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    Want to update the original thread to understand new prospective from Vinati@189. I am thinking about holding it for couple more years.

    (Quarterly)Net Sales/Income from operations showing significant growth:
    Sep '13 Jun '13 Mar '13 Dec '12 Sep '12
    174.89 147.87 163.09 139.34 126.59


    (Yearly) Net Sales/Income from operations
    Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
    541.70 442.11 325.25 237.43 195.82

    (Yearly) Total Debt
    200.84 153.22 76.96 63.12 50.96

    If there are any more factors I should be looking for please share your view.

    Thank you,
    /Kaushal
     
    kaushall1, Dec 24, 2013
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  8. shabbir

    shabbir Administrator Staff Member

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    Yes I like the sale going higher and higher but debt coming lower but debt is increasing quite a bit and currently Debt Equity Ratio is 0.83 and that is ok as long as it is under 1
     
    shabbir, Dec 24, 2013
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