Vinati Organics Limited (VINATIORGA) AI Stock Analysis

• Market Cap: ₹157.98B
• Dividend Yield: 0.48%
• Average Volume (3M): 1.59K
• Price to Earnings (P/E): 35.7
• Beta (1Y): 0.91
• Revenue Growth: 8.96%
• EPS Growth: 17.70%
• Country: IN
• Employees: 1,279
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 11.35
• Shares Outstanding: 103,665,634
• 10 Day Avg. Volume: 1,522
• 30 Day Avg. Volume: 1,587
• PEG Ratio: 1.59
• Price to Book (P/B): 5.87
• Price to Sales (P/S): 7.33
• P/FCF Ratio: -389.88
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ₹1,669.00 ▲(4.28% Upside)

Vinati Organics Limited demonstrates strong financial performance with robust revenue growth and profitability, which is the most significant factor in the overall score. However, the high P/E ratio and modest dividend yield suggest a high valuation, which may limit immediate investment appeal. Technical indicators show a stable but non-trending market position, contributing to a moderate overall score.

Positive Factors

Strong margins and revenue growth

High margins plus near-20% revenue growth signal durable operating leverage. Sustained gross and EBITDA margins support reinvestment in capacity and R&D, enable pricing flexibility versus inputs, and underpin long-term free-cash generation if capex normalizes.

Very low financial leverage

Minimal debt and a strong equity base provide financial resilience and optionality for strategic investment. Low leverage reduces refinancing risk and interest burden, allowing management to fund capex or weather cyclical downturns without heavy external financing.

Niche specialty-chemicals business model

Specialization in technical intermediates creates high switching costs and customer qualification barriers. Long-term supply relationships with industrial customers foster recurring demand, support pricing power in niche segments, and raise barriers to new entrants.

Negative Factors

Negative free cash flow trend

Persistently negative free cash flow driven by elevated capex constrains internal funding for dividends, debt paydown or acquisitions. If capex remains high, the company may need external financing or slower growth, reducing strategic flexibility over the medium term.

Margin sensitivity to feedstock and energy costs

Profitability depends on maintaining spreads over volatile raw-material, energy and logistics costs. Structural swings in commodity or energy prices can compress margins long-term unless pass-through pricing, vertical integration or effective hedging is implemented.

Product concentration risk

Revenue reliance on a few core molecules increases exposure to demand shifts, regulatory changes or competitive displacement in those end-markets. Limited product diversification can amplify cyclicality and raise long-term revenue and margin volatility.

Vinati Organics Limited Business Overview & Revenue Model

Company Description

Vinati Organics Limited, a specialty chemical company, engages in the manufacture and sale of specialty organic intermediaries and monomers primarily in India. It offers specialty monomers comprising 2-acrylamido 2-methylpropane sulphonic acid, sodium salt of 2-acrylamido-2-methylpropane sulphonic acid, N-tertiary butyl acrylamide, and N-tertiary octyl acrylamide. The company also provides aromatics, including isobutyl benzene, which is used as raw material for manufacturing ibuprofen, an anti-inflammatory analgesic bulk drug; normal butyl benzene that is used as compound for chemical synthesis of a number of intermediates; hexenes, which is used as low boiling point solvents, as thinners, for solvent extractions, in tire retreading, as octane booster for gasoline, and for manufacturing C-5/C-6 aliphatic petroleum; and butyl phenols. In addition, it offers methyl-4-tert butyl benzoate; para tertiary butyl benzoic acid; isobutylene, a carbon branched olefin; methanol for use as a chemical intermediate; high purity methyl tertiary butyl ether that is used as a solvent in organic synthesis, pharmaceutical synthesis, and synthesis of Grignard's reagent; tertiary-butylamine; and polymers for use in industries, such as construction, ceramics, oil drilling, mining, leather, and paper. The company also exports its products primarily to the United States, Europe, and Asia. Vinati Organics Limited was incorporated in 1989 and is based in Mumbai, India.

How the Company Makes Money

Vinati Organics generates revenue primarily through the sale of specialty chemicals and intermediates used in various industries, including pharmaceuticals, agrochemicals, and plastics. The company has multiple key revenue streams, including the production and sale of its flagship products like methyl methacrylate and isobutylbenzene, which are in high demand globally. Additionally, Vinati Organics benefits from strategic partnerships and collaborations with other companies in the chemical sector, enhancing its market reach and operational efficiencies. The company's commitment to research and development also allows it to innovate and introduce new products, contributing to its overall earnings and market competitiveness.

Vinati Organics Limited Financial Statement Overview

Summary

Vinati Organics Limited exhibits strong financial performance with robust revenue growth and profitability, supported by a stable balance sheet with low leverage. Despite challenges in free cash flow due to high capital expenditures, the company maintains healthy operational cash flow. Overall, the financial health is robust, with potential for continued growth and expansion.

Income Statement

Vinati Organics Limited demonstrates a robust income statement with strong revenue growth and profitability. The gross profit margin for 2025 is approximately 40.1%, indicating efficient cost management. The net profit margin has also improved to 18%, reflecting enhanced profitability. Notably, the revenue growth rate from 2024 to 2025 is 18.9%, showcasing significant business expansion. Additionally, the EBIT and EBITDA margins stand at 33.9% and 25.8%, respectively, highlighting strong operational efficiency.

Balance Sheet

The balance sheet of Vinati Organics Limited is stable with a low debt-to-equity ratio of 0.02, indicating minimal leverage and reduced financial risk. The return on equity (ROE) for 2025 is 14.5%, showing effective utilization of shareholder funds to generate profits. The equity ratio is high at 85.2%, reflecting a strong capital structure with a significant portion of assets financed by equity. Overall, the balance sheet suggests financial stability and low risk.

Cash Flow

Cash flow analysis reveals a mixed scenario. The free cash flow has significantly declined from -719.1 million in 2024 to -420.5 million in 2025, but the operating cash flow to net income ratio is favorable at 1.13, indicating good cash generation from operations relative to net income. However, the free cash flow to net income ratio is negative due to high capital expenditures, suggesting potential constraints on cash availability for investment and expansion.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	22.65B	22.36B	18.90B	20.65B	16.13B	9.42B
Gross Profit	9.27B	9.01B	5.49B	10.01B	7.52B	5.55B
EBITDA	6.52B	5.81B	5.10B	6.25B	4.96B	3.79B
Net Income	4.25B	4.05B	3.23B	4.19B	3.47B	2.69B
Balance Sheet
Total Assets	0.00	32.79B	28.40B	25.47B	20.90B	17.34B
Cash, Cash Equivalents and Short-Term Investments	139.30M	139.30M	333.80M	2.03B	142.48M	1.88B
Total Debt	0.00	626.30M	46.46M	2.01M	183.99M	20.25M
Total Liabilities	-27.93B	4.86B	3.82B	3.29B	2.62B	1.90B
Stockholders Equity	27.93B	27.93B	24.62B	22.18B	18.28B	15.43B
Cash Flow
Free Cash Flow	0.00	-420.50M	-719.14M	2.99B	-471.06M	1.36B
Operating Cash Flow	0.00	4.58B	3.32B	5.77B	1.27B	2.19B
Investing Cash Flow	0.00	-4.43B	-3.48B	-3.67B	-2.55B	-1.98B
Financing Cash Flow	0.00	-155.80M	-1.08B	-859.60M	-465.42M	-30.98M

Vinati Organics Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1600.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:VINATIORGA, the sentiment is Negative. The current price of 1600.55 is above the 20-day moving average (MA) of 1558.25, above the 50-day MA of 1573.91, and below the 200-day MA of 1714.80, indicating a bearish trend. The MACD of -22.45 indicates Positive momentum. The RSI at 38.76 is Neutral, neither overbought nor oversold. The STOCH value of 22.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:VINATIORGA.

Vinati Organics Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VINATIORGA	69 Neutral	₹157.98B	35.67	―	0.48%	8.96%	17.70%
ATUL	64 Neutral	₹182.97B	30.79	―	0.41%	16.46%	43.59%
NAVINFLUOR	64 Neutral	₹312.33B	68.72	―	0.23%	30.05%	70.18%
AARTIIND	62 Neutral	₹134.76B	46.30	―	0.26%	8.26%	-34.62%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
BASF	59 Neutral	₹157.67B	42.03	―	0.51%	0.43%	-42.29%
DEEPAKNTR	52 Neutral	₹223.91B	42.13	―	0.44%	-7.50%	-37.67%

Vinati Organics Limited Corporate Events

Vinati Organics Publishes Q2 Financial Results

Vinati Organics Limited announced the publication of its unaudited standalone and consolidated financial results for the second quarter and half-year ending September 30, 2025. These results were approved by the Board of Directors and published in compliance with SEBI regulations. The publication, which includes a Quick Response code for accessing complete financial details, reflects the company’s commitment to transparency and regulatory compliance, potentially impacting its market perception and stakeholder confidence.