This Multibagger Midcap specialty Chemicals Stock Will Trade 650% Ex-Dividend Next Week

650% Final Dividend

The Board of directors of Vinati Organic Limited held a meeting on May 14, 2022, where the Board recommended a final dividend of Rs 6.50 per equity share of Rs 1 each i.e. 650% for the fiscal year 2021-22. 

According to the data available on the NSE, the Board of Directors of the company in its filing to the stock exchanges has stated, "Recommended a dividend of Rs.6.50 per equity share of face value of Re.1/- each (650%) for the financial year ended March 31, 2022, which will be paid / dispatched to the eligible shareholders of the Company registered in the Register of members of the Company as on the record date to be decided, within 30 days from the conclusion of the 33rd Annual General Meeting, subject to the approval of the Shareholders."
 
Ex-Date - The recommended 650% final dividend will trade ex-dividend date on 6 September 2022. The record date for the same has not yet been announced by the company.
 

Vinati Organic Dividend History

Vinati Organic Limited has declared 25 dividends since August 2001. The company has maintained a good track record of dividends to its shareholders. In the past 21 years, the company has declared 22 final dividends and 3 Interim dividends, respectively. Last year, the company also declared a final dividend of 600% amounting to Rs 6 per equity share of Rs 1 each.

Stock Outlook

On Tuesday, 30 August, the stock of the company closed at Rs 2,201.40 apiece, it was opened at Rs 2,191.30 apiece. The 52-week high of the stock is Rs 1,674.20 and the 52 week low is Rs 2,323.80 apiece, respectively. On intraday, the stock's low level is Rs 2,193.15 apiece and the high level is Rs 2,231 apiece, respectively. Its ROE is 18.96%. The dividend yield is 0.30 and the face value is Rs 1. 

Returns on Investments

The stock of the company in the past 1 week gained 0.91% and in the past 1 month gained 0.85%, respectively. Over the past 3 months and 1 year, the stock has given 10.27% and 22.94%, respectively. In the past 3 years, the stock has given a multibagger return of 107.73% and in the past 5 years, the stock has given a multibagger return of 331.31%, respectively.

Q1FY23 Results

According to the brokerage report of Geojit on the Vinati Organic Limited published on 25 August 2022:

• Q1FY23 revenue grew by 31% YoY led by strong demand from its key product ATBs, while offtake from other segments also remained healthy.
• EBITDA grew by 29% YoY, while margins fell by 40bps YoY to 25.8% due to higher other expenses & logistic cost. Despite this, PAT grew by 25% YoY.
• Revenue growth momentum is expected to continue, given strong demand for its key products, capacity expansion and higher contribution from new products.
• Synergies owing to backward & forward integration, strong cash flows, healthy balance sheet and ROCE & ROE of above 24% (5yr avg.), instills confidence.

Brokerage's recommendation and outlook

The brokerage said, "We maintain positive stance on given VOL focus on introduction of new products by leveraging growth opportunities in existing portfolio, strong balance sheet and healthy RoE & ROCE of above 24% (avg. last 5years). We value Vinati Organics at P/E of 40x (4yr avg.) on FY24E, While given premium valuation and sharp run-up in stock prices, we downgrade Vinati Organics to Accumulate from Buy with target price of Rs.2,484."

About - Vinati Organic Limited

Vinati Organics Ltd enjoys global leadership in two specialty chemicals, with a market share of 70% in IBB (isobutyl benzene) and 80% in ATBS (2-Acrylamindo 2-Methylpropane Sulfonic Acid). It is a leading manufacturer of specialty chemical and organic intermediaries with a sustained market presence spanning over 35 countries in the world. The company was incorporated in 1989. Since its inception it has evolved from being a single product manufacturer to an integrated business, offering a wide range of products to some of the largest industrial and chemical companies across US, Europe and Asia. 

Disclaimer

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