Back on Track?

Vishnu Chemicals reported strong sequential improvement in EBITDA (up by 55% Q-o-Q, 4% Y-oY) with highest ever absolute EBITDA in a quarter. EBITDA margin also improved to 21.2% during 4QFY24 (13.3% in Q3FY24, 18.1% in Q4FY23). This was achieved despite significant increase in freight cost and soft realizations. Good performance was driven by strong improvement in the Barium chemicals. PAT was subdued due to higher tax expense (mainly driven by Rs.7.5 cr deferred tax, which is a non-cash item).

Overall performance for the quarter looks impressive. Vishnu is one of the few chemical companies, which has reported decent quarterly performance in the sector which is facing headwinds.

FY24 performance as compared to FY23 is weak with decline of 14% in operating income, 12% in EBITDA and 26% in PAT. However, strong sequential recovery during 4QFY24 is a comforting factor.

Q4FY24 PR.pdf (913.0 KB)

The stock is trading at 20x FY24 earnings. It looks attractive considering resilient performance with indication of performance coming back on track, leadership position in Chromium and Barium Chemicals in India, continuous efforts towards forward and backward integration and overall growth prospects.

DIIs entered the stock for the first time during QIP issue in August 2023 and continue to gradually add. Stock is currently trading below QIP price of Rs.345.

Disc: Invested. I am not SEBI registered Advisor/Analyst. My view may be positively biased. I am not suggesting any investment action. The information provided above is for education purpose only.

Intersting charts and data

Dividend ,EPS and BV going up
PE and P/book comimg down

Manappuram PE 6.98 x 2.5 = Muthoot PE 17.47
Manappuram P/book 1.32 x 2.2 = Muthoot PB 2.93

Gold price going up

please add me too in the group also interested in joining meet up

Slowing moving towards phonepe path – first with UPI and now insurance. But too late .Let’s see.

When are the FY24 results expected? Couldnt find any date online.