- Company is expected to give good quarter - Company has delivered good profit growth of 56.1% CAGR over last 5 years - Company has a good return on equity (ROE) track record: 3 Years ROE 25.2% - Annual Revenue rose 30.8%, in the last year to Rs 1,406.2 Crores. Its sector's average revenue growth for the last fiscal year was 17.1%. - Annual Net Profit rose 67.8% in the last year to Rs 136.6 Crores. Its sector's average net profit growth for the last fiscal year was 6.9%. - Quarterly Revenue rose 0.7% YoY to Rs 338.6 Crores. Its sector's average revenue growth YoY for the quarter was 1%. - Quarterly Net profit rose 24.7% YoY to Rs 35.6 Crores. Its sector's average net profit growth YoY for the quarter was -27.8%. - P/E Ratio is 15.8, lower than its sector PE ratio of 47.9. - Return on Equity (ROE) for the last financial year was 33%, more than 20% in the last financial year.
Pledged Shares Total promoter shareholding pledged was 41% in September 2020 It came down to 36% as of September 2022 Recently Promoter Pledge fell 32.2% QoQ taking the total promoter holding pledge % to 3.8%.
Incorporated in 1989, Vishnu Chemicals Limited is in the business of manufacturing, marketing and export of Chromium chemicals and Barium compounds across the world. Located in Hyderabad, the company is serving more than 12 industries across 57 countries globally and has 40% market share of Barium Carbonate in India. The key raw material is Barytes.
User Industries Their products are used in Pharmaceuticals, Automotive, Wood, Leather, Paper, Ceramic, Construction, Metals, Plastics, Refractory, Glass, Pigment, and Dyes.
Industry Demand Drivers a) Chromium Compounds: 700,000 MTPA is the global demand for Chromium chemicals growing at 6% p.a. India’s demand would be around 60,000 MTPA which includes SDC and its derivatives.
b) Barium Carbonate: Global Barium Carbonate market size is USD 575 M growing at 6% CAGR. India’s demand is about 35,000 MTPA.
CAPEX For the Chromium business, debottlenecking has led to a capacity increase of 10,000 TPA, an increase of 14% on existing plate capacity. Production started from Q2FY23. The total upgradation required an investment of Rs 30 Cr.
For the Barium business, Brownfield expansion to introduce a new speciality chemical to aid Barium portfolio diversification is on track and is expected to be commissioned by Q1FY24. Total investment required is Rs 90 Cr.
The whole destocking situation in the chemical space leading to 40% fall in prices approx has been a major headwind
CuriousChartist
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@Aayush_Rungta, I'm still positive as long as the price stays above 315 - 320.
Aayush_Rungta
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Happy to see rising interest in VIshnu. Here's my take on it, published some weeks earlier. Excited about its potential! Link :
CuriousChartist
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@Aayush_Rungta, You spotted it earlier and that is very good. Dow Theory + Good Fundamentals seldom fail. I like charts which not only give technical info but also provides ready insights into the fundamentals. Keep it up.
Aayush_Rungta
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@CautiousChartist, Thank you bro! Means a lot to me. Have always enjoyed reading your ideas and insights, cheers!
CuriousChartist
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@Aayush_Rungta, Thank you. The happiness of realizing that people are enjoying the idea is inexplicable. I liked your ideas and charting too. Let's keep sharing and growing. Cheers !