Time period given by analyst is six months when Vishnu Chemicals price can reach defined target.
Vishnu Chemicals Ltd., incorporated in the year 1993, is a Small Cap company (having a market cap of Rs 872.84 Crore) operating in Chemicals sector.
Vishnu Chemicals Ltd. key Products/Revenue Segments include Chemicals (Inorganic), Export Incentives, Scrap and Other Operating Revenue for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 197.95 Crore, down -7.80 % from last quarter Total Income of Rs 214.70 Crore and up 30.29 % from last year same quarter Total Income of Rs 151.93 Crore. Company reported net profit after tax of Rs 11.59 Crore in latest quarter.
Investment Rationale
VCL had witnessed a muted earnings growth of 7.9% CAGR during FY15-21. Going forward, , VCL can show acceleration in topline and bottomline. The brokerage expects, its revenue, EBITDA and PAT to record a growth of 16/36% and 51% CAGR over FY21-23E along with consistent FCF generation and improvement in working capital. Segment-wise, the brokerage expects Chromium and Barium revenues to grow at CAGR 15% and 17% respectively over FY21-23E. Higher PAT growth will be driven by strong operating performance across both Chromium and Barium segments where it expects segment-wise EBITDA margins to expand by 600/400 bps respectively over FY21-23E. At a consolidated level, it expects overall margins to expand by 430 bps to 15.9% in FY23E v/s 11.6% in FY21. Also strong cash flows on the back of better operating performance will result in lower debt, aiding lower interest cost which will further be earnings accretive.
Promoter/FII Holdings
Promoters held 75 per cent stake in the company as of June 30, 2021, while FIIs held 0.1 per cent, DIIs 0 per cent and public and others 24.9 per cent.
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