Saturday, May 15, 2021

Vinyl Chemicals (I) Ltd ( 524129 ) - Rising VAM prices will add at Bottomline

Vinyl Chemicals (I) Ltd ( 524129 ) closes   at 146.75 with  a  Loss  of   -3.70%   on    14-May-2021  with formation of  a  Red  Candle    on Daily  Price Chart.

About the Company : Vinyl Chemicals (India) Ltd. is engaged in trading of chemicals. The Company is involved in the business of selling various specialty chemicals to textile, paints and adhesive sectors. The Company is engaged mainly in trading of Vinyl Acetate Monomer (VAM). The VAM is imported/sourced from various global suppliers and distributed/traded in India

Sector Update : Positive

Strength :  VAM costs surged 186% YoY and 19.1% QoQ.

Financials : Vinyl Chemicals (I) Ltd  has posted Net Sales / Revenue   of 404.00Cr & Net Profit of 11.00 Cr in FY2021.

Valuations  : The Company is now Trading at X 1.50  of its  valuations ( last 4Quaters earnings considered here) with ~50 % premium   .

Margin of Safety (1Yr Bond Yield: Value>1 ) is now  1.1  which  makes is attractive after a ~10% fall in market price. The  Equity Value Per Share ( Enterprise Value Method ) is  140.

Whats  best in It   : Vinyl Chemicals (I) Ltd is a Debt Free Company  .Owners Cash profit has turned positive and it finds place in our Growth Candidate matrix.

If We factor its earnings/valuations, its Price arrives at 198 with consideration FY2022 earnings.

Disclaimer : We are / may going to take exposure shortly.

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The author tracks economic, behavioural and corporate tends, hoping to gauge good avenues of return based on Fundamental Valuations of Stocks, a follower of EPV method. You can reach me/us at | Twitter # NiftyNext1 |  e-Mail : Mail@NiftyNext.Com  |  Tel +91 8802230836  |  Telegram # TheNiftyNext   |

 


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