Amazing projection for FY 22 revenue. With most pf the growth coming from ATBS, means Gross Margins are protected.
Safe to assume that current valuations have discounted these projections.
Disc. Invested at very low levels.
Stock Tales by ICICI Direct
http://content.icicidirect.com/mailimages/IDirect_VinatiOrganics_StockTales.pdf
The brokerage expects the company’s revenue to grow 2.6x by FY24E (v/s FY21), with around 56% YoY growth in FY22E
Financial Results Q2FY22
We wish to inform herewith that Vinati Organics Limited (“the Company”) has subscribed to
the additional 6,00,000 fully paid-up equity shares of face value of Rs.10/ - each at par
amounting to Rs. 60,00,000/- (Rupees Sixty Lakhs only), by way of subscription towards the
rights issue of Veeral Organics Pvt. Ltd., the wholly owned subsidiary of the Company.
Quarterly results that came after the market close today. Looks good at 1st glance
Vinati Organics Capex Plan.
Plan to double revenue by FY25.
As Germany faces energy crisis, BASF says it may have to shut down its Ludwigshafen complex if it cannot get adequate gas.
Among other things, Ludwigshafen produces Ibuprofen and has been an important customer for VOL.
Ain’t they predicting 50% in FY22 only as per the concall - Vinati Organics Limited Q3 FY22 Earnings Concall - YouTube.
Double revenue would be very conservative IMO
A slightly different kind of interview with very good discussion on broader industry landscape, current valuations (and its sustainability) and evolution of the company.
- Volume pick up for most of the product. IBB demand has picked up.
- Good demand for Butyl Phenol from US and Europe and can substitute in India.
- Double revenue in next 3 -4 years.
Is there any way to get transcripts on this
Go through their last quarter concall. I think transcripts aren’t available.
Latest CNBC interview (link)
- EBITDA/kg has remained the same, margins have come down due to increase in topline (due to input price increase)
- IBB has seen a 30% YOY growth in this quarter, ATBS has grown by 25-30%, butyl phenol and isobutylene have also gained market share
- Expect volume growth of 25% in FY23 (due to increased offtake of IBB and butyl phenol)
- Veeral Organics plant commissioning will take 12-15 months (capex of 250 cr.), so revenues will be only seen in FY24
- Expansion of butyl phenols and a couple of smaller niche products will require capex of 120-150 cr.
- Total capex of around 400 cr. in the next 2-years
Disclosure: Not invested
From this interview it is not clear when Veeral additive plant will be commissioned, in last qtr result it was said on March 2022. Same as well for Solar power plant, no question asked, no answers.