Vinati Organics Limited

Basic Materials — Specialty Chemicals · NSE

₹1,135.00+₹14.10 (+1.26%)

DalalBaazaar Score

64 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with modest growth. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Vinati Organics Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Vinati Organics Limited manufactures and sells specialty organic intermediaries and monomers in India and internationally.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees1,362

Annual revenue₹2,173 Cr

How does it make money?

Turns over ₹2,173 Cr a year. Of every ₹100 of sales, about ₹20 reaches shareholders as profit, with ₹32 left at the operating level before interest, tax and depreciation. Each of its 1,362 employees supports ₹1.60 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin32.3%

Net margin20.4%

Revenue / employee₹1.60 Cr

Who are its competitors?

The closest listed comparisons in its industry are ASIAN PAINTS LIMITED, PIDILITE INDUSTRIES LTD, SRF LTD, UPL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

ASIAN PAINTS LIMITEDP/E 46.9x · ROE 22.3%

PIDILITE INDUSTRIES LTDP/E 57.8x · ROE 24.4%

SRF LTDP/E 33.8x · ROE 15.4%

UPL LIMITEDP/E 21.5x · ROE 6.1%

What is its competitive advantage?Some evidence

ROCE of 17.7% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE17.7%

ROE14.0%

Peer median ROE22.3%

What is the outlook?

7 analysts covering the stock expect revenue to grow about 17.5% and earnings to grow about 20.5% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+17.5%

Est. earnings growth+20.5%

Analysts7

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +5% while net margin moved +1% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+5%

Margin effect+1%

DalalBaazaar Score

64/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 1.7% — barely ahead of inflation
✗ Profit CAGR of only 1.9%

Quality vs. Valuation

Company Quality

64/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

63/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

26.2x

3Y Median

43.0x

40 monthly readings · mean 44.8x · range 26.5x–67.0x

Sector Median

40.4x

median of 4 sector peers

🟢Current valuation is approximately 39% below its 3y median of 43.0x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 35% below the peer median of 40.4x.

vs. its own history

Cheap

43.0x median over 40 months · -39%

vs. sector peers

Cheap

40.4x median of 4 peers · -35%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

26.2x

P/B

3.72x

EV/EBITDA

16.8x

PEG

13.68

Dividend Yield

0.75%

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 30.1% to 32.3% over 3 years.
Cash generation is improving
Free cash flow is up 68% over 3 years.
Valuation below its historical average
At 26.2x the stock trades 39% below its own median of 43.0x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Return on equity is falling
ROE has dropped from 18.9% to 14.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 24.1% to 17.7% — often a sign of competition or overexpansion.
Inventory building faster than sales
Inventory is up 34% against revenue growth of 5% — stock may not be moving.

Red Flags

1 item require attention · 1 watch

🟡Inventory building faster than salesFinancial
Inventory up 34% against revenue up 5% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 30.1% to 32.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 39% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 35% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Growth barely outpaces inflation
Revenue compounding at 1.7% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 18.9% to 14.0%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 30%✓ 32.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✗ 1.7% CAGR
Latest reported year was 28.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹288 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 15%✓ 17.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 43.0x✓ 26.2x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

9 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 7 neutral · 0 weak

Market Cap

₹11,775 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

26.2x

Fair

Fairly valued against the generic band

P/B Ratio

3.72x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹43.26

Profitable

Profitable on a per-share basis

ROE

14.0%

Moderate

Moderate capital efficiency

ROCE

17.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

28.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

4.5%

Modest

Slow profit growth

Dividend Yield

0.75%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹288 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹1,135

P/E (Forward)

20.8x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

19.9%

Good

Healthy core-business profitability

Net Margin

18.8%

Good

Strong bottom-line conversion

Current Ratio

5.40

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.27

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

1171.9 / 1259.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

35.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,065 Cr	₹1,890 Cr	₹2,236 Cr	₹2,173 Cr	+1.7%
EBITDA	₹621 Cr	₹495 Cr	₹623 Cr	₹701 Cr	+4.1%
EBITDA Margin	30.1%	26.2%	27.9%	32.3%	—
PAT (Net Profit)	₹419 Cr	₹323 Cr	₹405 Cr	₹444 Cr	+1.9%
EPS	₹40.43	₹31.15	₹39.09	₹42.8	+1.9%
ROE	18.9%	13.1%	14.5%	14.0%	—
ROCE	24.1%	16.6%	18.1%	17.7%	—
Total Debt	₹35 Cr	₹5 Cr	₹63 Cr	—	—
Free Cash Flow	₹172 Cr	-₹66 Cr	-₹42 Cr	₹288 Cr	+18.9%

🟡 Revenue has been broadly flat over 3 years (1.7% a year).

🟢 EBITDA has grown at 4.1% a year over 3 years.

🟢 EBITDA Margin has risen from 30.1% to 32.3% over 3 years (+2.2 pts).

🟡 PAT (Net Profit) has been broadly flat over 3 years (1.9% a year).

🟡 EPS has been broadly flat over 3 years (1.9% a year).

🔴 ROE has fallen from 18.9% to 14.0% over 3 years (-4.9 pts).

🔴 ROCE has fallen from 24.1% to 17.7% over 3 years (-6.4 pts).

🟢 Free Cash Flow has grown at 18.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,590 Cr

Total Liabilities

₹428 Cr

Total Debt

—

Cash & Equivalents

₹4 Cr

Operating Cash Flow

₹558 Cr

Capex

-₹270 Cr

Shareholding (proxy)

Institutional Holding

11.1%

Insider Holding

75.2%

Corporate Actions

Dividend Rate

₹8.5

Ex-Dividend Date

16 Sept 2026

Analyst Consensus

Recommendations

10 Buy · 2 Hold · 1 Sell

Target Price (Mean)

₹1,602.85

+41.2% vs CMP

Target Range

₹1,160 – ₹1,960

Peer Comparison

Company	P/E	ROE
ASIAN PAINTS LIMITED	46.9x	22.3%
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

1 positive3 mixed2 general

VINATIORGA Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Vinati Organics Limited (NSE:VINATIORGA) Looks Like A Good Stock, And It's Going Ex-Dividend Soon

Simply Wall Street, 13 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Vinati Organics Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

Why Is Vinati Organics Share Price Falling Key Reasons 2026

Univest, 05 MayPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Buy Vinati Organics; target of Rs 1550: Motilal Oswal

Moneycontrol.com, 30 Jul

Vinati Organics shareholders approve all AGM resolutions; voting results filed

scanx.trade, 24 SeptResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

🟢Business QualityStrong14.3/20

🟢Financial HealthStrong17.5/20

🔴GrowthWeak7.4/20

🟡ProfitabilityModerate8.9/15

🟡ValuationFair9.5/15

🟢RiskLow6.7/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

This thesis breaks if

✓EBITDA margin holds above 30%32.3%
✗Revenue growth stays above 4% a year1.7% CAGR
✓Free cash flow remains positive₹288 Cr
✓ROCE stays above 15%17.7%
✓Valuation vs its own median of 43.0x26.2x today