This Smallcap speciality chemical stock announces 1:5 stock split!

The company continues to improve its working capital efficiency resulting in reduction in inventory and debtor days.   

Vishnu Chemicals Limited epitomises manufacturing of high-performance speciality chemicals, with strong market leadership and an intelligent symphony of forward and backward integration, to produce world-class products that are focused on diverse needs and aspirations of its customers across more than 60 countries.  

The company, while announcing its quarterly earnings on Monday, stated that its board has approved the proposal for a 1:5 stock split or sub-division of shares. It means for a split of 1 share at a face value of Rs 10 each, into 5 equity shares at a face value of Rs 2 each. The rationale behind the split is to enhance the liquidity in the capital market, to widen shareholder base and to make the shares more affordable to small investors.   

In Q2FY23, the company continues to report record quarterly sales, EBITDA and PAT. Consolidated domestic and exports sales continued its growth trend, growing by 57 per cent and 53 per cent YoY. Expansion of +245 bps in EBITDA margin YoY and +250 bps in PAT margin YoY in Q2FY23. Unwavering focus on manufacturing had led the company to be a global leader in terms of gross asset turnover and ROCE amidst peers. Gross asset turnover and ROCE reached highest levels of 2x and 35 per cent plus, respectively. The company continues to improve its working capital efficiency resulting in reduction in inventory and debtor days.   

The stock has jumped over 134.63 per cent in the last one year and thus, it has turned out to be a multibagger. In the last six months the stock has advanced nearly 19 per cent.