Vinati Organics (VINATIORGA)

FairStock Score: 51/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 1/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I wear Graham's glasses and Buffett's patience. Vinati Organics is a specialty chemicals business with a ₹13,884 Cr market cap at ₹1,338.30. The first thing I notice is the balance sheet: debt/equity is 0.00, a rare luxury. Returns are respectable: ROE 18.49% and ROCE 20.61%, meaning the business earns more than its cost of capital. Promoter holding of 74.29% aligns management with shareholders, and Piotroski F-Score 7/9 suggests accounting and operating momentum are sound. Sales have grown 28.58% and five-year revenue CAGR is 16.92%, so it is not standing still. But profit growth is only 9.56%, far behind sales, so I ask whether pricing power or cost efficiency is slipping. Free cash flow of ₹15 Cr is thin; I want cash earnings to fund growth without outside capital. Valuation is the rub: P/E 30.96, P/B 4.39, and PEG 3.04. For a business with high-teen ROE and single-digit recent profit growth, that is not a Graham bargain. Dividend yield of 0.56% gives little income support. At ₹1,338.30, it sits below the 52-week high of ₹1,722.40 but above the low of ₹1,116.00. FairStock Score 51/100 says mixed. I would call it a quality Stalwart, not a fast grower: a wonderful debt-free chemical franchise, but the price already assumes much. I'd wait for a wider margin of safety or evidence that profit growth catches up with sales and FCF turns stronger.

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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer