Reviews

VINYL CHEMICALS (INDIA) LTD.

Ticker : 524129
FV: ₹1
52-Week H/L: ₹330.55/141



We recommended Vinyl Chemicals Limited in volume no. 38, issue no.29 (dated May 05, 2022) when the scrip was trading at Rs 308.9. On a standalone basis, the company recorded net sales and other operating income of Rs 120.50 crore in Q4FY22, lower by 27.39 per cent than Rs 165.96 crore reported in Q4FY21. Operating profit was recorded at Rs 19.43 crore in Q4FY22, a rise of more than 200 per cent as compared to an operating profit of Rs 5.19 crore in Q4FY21. Q4FY22 recorded a net profit of Rs 14.51 crore in comparison with a net profit of Rs 3.87 crore in Q4FY21, improving robustly beyond 200 per cent. Growing demand from various end-user industries is projected to drive the market growth of vinyl acetate monomer. The company’s share has outperformed the market by gaining up to 21 per cent on a YTD basis. On a one-year basis, the company’s share is trading substantially lower than the median PE ratio. Hence, we recommend HOLD.