This chemical company stock gained 74 per cent in a month and is trading near its 52-week high, hitting multiple upper circuits

The sequential sales of Q1FY23 for Vinyl Chemicals increased by 158 per cent, from Rs 121 crore to Rs 311 crore.

Since the beginning of September, the stock of Vinyl Chemicals has given back-to-back upper circuits. At Rs 654, the stock is currently trading at a 52-week high. 

The stock is currently up around 10 per cent, and volume has increased by 1.96 times. The company has a market value of Rs. 1197 crore. The stock was trading at Rs 372 one month ago; it has since increased by 74 per cent. The company notified the exchange of any material changes that could have caused such price volume action after the exchange requested clarification following such price fluctuation. The company's FY23 Q1 results were fantastic. Earlier receivables represented 41 per cent of revenues, but in FY22 it declined to a mere 7 per cent. 

Vinyl Chemicals (India) Limited, a Parekh Group Company, was promoted by Pidilite Industries Limited (PIL) in 1986. The company is currently engaged in the business of trading in Chemicals viz. Vinyl Acetate Monomer (VAM). Earlier, the Company was engaged in the business of manufacturing VAM in its plant located at Mahad in Raigad District, Maharashtra, India. 

Sequential quarter revenue in FY23Q1 increased by 158 per cent, from Rs 121 crore to Rs 311 crore. The business is nearly debt-free. A significant change in the receivables days led to strong cash collection. From 111 days to just 11 days, they have been cut short. The key ratios of the company, ROE and ROCE, are really what attract investors to this company. For FY22, it has ROE and ROCE of 42.5 per cent and 56.7 per cent, respectively. 

In FY22, the profit after tax rose from Rs 11 crore to Rs 35 crore. The majority of the company's expenses, or about 90 per cent, are related to raw material costs. As a result, the business depends heavily on the cost of its raw materials.