Vinati Organics Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Vinati Organics Ltd trades at ₹1,294, in a downtrend and 52 weeks into that stage. That is −8.3% against its own 200-day average. It sits at 9% of a 52-week range of ₹1,254 to ₹1,688. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (12 weeks and counting).

Today the stock is in a downtrend — week 52 of stage 4, confirmed. At ₹1,294 it trades −8.3% versus its 200-day average and sits at 9% of its 52-week range (₹1,254–₹1,688).

Against the market, two honest reads. Cumulative: over the last 10.5 years the stock moved +530% while the NIFTY 500 moved +267% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (12 weeks and counting; last ahead the week of 2026-06-25) — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Vinati Organics Ltd trades at 29.9× P/E, about the cheapest it has ever traded. Its long-run median P/E is 49.9×, measured across 5.3 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 29.9× is about the cheapest it has ever traded, against a long-run median of 49.9× measured over 5.3 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +9.5% against a −23.7% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 5y, of the −8.0%/yr price move, ~+10.6%/yr came from earnings growth and ~−18.6 pp from the multiple (compressing). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is low against its own past, so the story rests on the earnings line underneath it, not the multiple.

The PEG ratio and its quarterly curve, which only the second data source carries, are not drawn on this page: its two data sources disagree by up to 27% on reported income across 14 comparable periods. A figure two sources cannot agree on is not drawn — the gap is a decision, not missing data.

Stage: Topping out Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Vinati Organics Ltd reads as topping out on its fundamental arc. Topping out — profit and EPS growth have decelerated hard (profit growth +25.8% at its peak → +5.6% latest) while ROCE still reads 20.0%. The read is built from 8 quarters across 4 curves, on partial evidence.

Why it matters: decelerating from a peak is where good stories quietly end — the multiple usually notices late.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

4-Factor Sector Score

44.4/100 — rank 18 of 28 in Speciality Chemicals · 82% evidence confidence

Vinati Organics Ltd scores 44.4 out of 100 against the 28 companies it is compared with in Speciality Chemicals, ranking 18. Cheap but unconfirmed: require improving earnings before treating the valuation as an opportunity.

The four contributions add to the total exactly: 11.2 + 17.5 + 13.4 + 2.3 = 44.4. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Vinati Organics Ltd reported ₹696 Cr of revenue in the Jun 26 quarter, +28.4% year on year. Over 6 years it has compounded at 13.7% a year. The last full year, FY26, came in at ₹2,227 Cr. The last four reported quarters add to ₹2,381 Cr.

FY26 revenue came in at ₹2,227 Cr (−0.9% on the year), capping 6 years at 13.7% compound. The latest quarter (Jun 26) printed ₹696 Cr, +28.4% year on year.

Pace check: the last four quarters averaged +5.7% growth against the decade's 13.7% — the current year is running slower than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +5.1% over the last 4 quarters against +9.5%/yr over the last 8 — rolling over; TTM profit +5.6% vs +15.4%/yr — rolling over.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Vinati Organics Ltd's operating margin is 24.0% in the Jun 26 quarter, −5.0 percentage points against the same quarter a year ago. Across 7 fiscal years the operating margin has ranged 25.0% to 40.0%. The current quarter is running below every full year in that window.

The latest quarter's operating margin is 24.0%, −5.0 pp against the same quarter a year ago. Across 7 fiscal years the operating margin has ranged 25.0%–40.0%.

🚨 Why the margin moved: operating margin went −5.0 pp year on year while gross margin went −6.4 pp — the loss came mostly from the gross line: input costs and pricing.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Vinati Organics Ltd earned ₹109 Cr of net profit in the Jun 26 quarter, +4.8% year on year. It is the 9th consecutive quarter of growth. Full-year FY26 profit was ₹444 Cr. The 6-year compound rate is 4.9%. That is 15.7% of the quarter's revenue. The same quarter a year earlier earned ₹104 Cr.

Jun 26 profit was ₹109 Cr, +4.8% year on year — the 9th consecutive quarter of growth. On the full year, FY26 printed ₹444 Cr (+9.6%), and the 6-year compound rate is 4.9%.

Why profit moved: revenue contributed +28.4% and the margin −5.0 pp — the quarter was revenue-led despite a thinner margin.

Pace comparison, last four quarters: profit +5.9% vs revenue +5.7%. Profit and revenue are moving roughly in step.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 115% of Vinati Organics Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹558 Cr of operating cash against ₹444 Cr of profit. After ₹285 Cr of capital spending, ₹273 Cr was left as free cash.

FY26: operating cash of ₹558 Cr against reported profit of ₹444 Cr, leaving free cash of ₹273 Cr after ₹285 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 115% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 115%: the cash cycle held roughly steady between FY21 and FY26 — so conversion tracks profitability rather than the cycle.

Router verdict: the bigger cash user is investment — capital spending ran 4.4× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Vinati Organics Ltd's cash conversion cycle runs 152 days in FY26, down from 158 days in FY21. Capital spending ran ₹1,208 Cr over the last 3 years. At FY26 sales of ₹2,227 Cr each day of that cycle holds about ₹6.1 Cr, so roughly ₹927 Cr sits inside the business at any moment.

FY26: debtors at 85 days, inventory at 110 days — roughly 3.6 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 152 days, tighter than FY21's 158.

The full loop: cash goes out to suppliers and production on day 0; stock waits 110 days to sell; customers pay about 85 days after that; and suppliers themselves are paid at 43 days — netting out to the 152-day cycle.

In money terms: at FY26 sales of ₹2,227 Cr, each day of the cycle holds about ₹6.1 Cr — so the 152-day loop keeps roughly ₹927 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹1,208 Cr over the last 3 fiscal years against ₹273 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹214 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Vinati Organics Ltd earns a ROCE of 20% in FY26. That is up from a trough of 19% in FY24. A return-on-invested-capital spread against the cost of capital is not computable from what is held here. The wiring behind it is 19.9% net margin on 0.62× asset turns.

FY26 ROCE is 20%, recovered from a FY24 trough of 19% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 19.9% net margin × 0.62× asset turns × 1.13× balance-sheet leverage ≈ 13.9% on equity. Margin is doing the heavy lifting; leverage is modest — this is an earned return, not a borrowed one.

The quarterly return curves and the return-on-invested-capital overlay, which only the second data source carries, are not drawn on this page: its two data sources disagree by up to 27% on reported income across 14 comparable periods. A figure two sources cannot agree on is not drawn — the gap is a decision, not missing data.

Debt Debt-to-equity says how much of the business is funded by borrowings; interest cover says how many times operating profit pays the interest bill. Low and high, respectively, is the safe corner.

Vinati Organics Ltd carries ₹0.0 Cr of borrowings against ₹3,161 Cr of equity in FY26, a debt-to-equity of 0.00. Operating profit covers the interest bill north of 100×. Over 5 years borrowings went from ₹2.0 Cr to ₹0.0 Cr. Capital spending ran ₹1,208 Cr across the last 3 of those years.

FY26: borrowings of ₹0.0 Cr against equity of ₹3,161 Cr — a debt-to-equity of 0.00. Operating profit covers the interest bill north of 100×. Over 5 years borrowings went from ₹2.0 Cr to ₹0.0 Cr while capital spending ran ₹1,208 Cr in just the last 3 — the build-out is being paid for out of cash, not debt.

The total-debt and debt-to-equity series, which only the second data source carries, are not drawn on this page: its two data sources disagree by up to 27% on reported income across 14 comparable periods. A figure two sources cannot agree on is not drawn — the gap is a decision, not missing data.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Domestic institutions added 2.5 points of Vinati Organics Ltd over 8 quarters, the biggest move on the register. That takes domestic institutions to 9.2% of the company. Foreign institutions moved −1.7 points over the same window, to 3.6%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: +2.5 points over 8 quarters to 9.2%; Foreign institutions: −1.7 points over 8 quarters to 3.6%; Promoters: +0.0 points over 8 quarters to 74.3%.

Why the register moved: rotation — foreign institutions −1.7 points against domestic institutions +2.5 points over 8 quarters, with promoters holding steady — one class of institutions handing the register to the other, not a verdict change by the people closest to the numbers.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Vinati Organics Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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