Vinati Organics

Few positive developments in this month

• The company has commenced commercial production of Ortho Secondary Butyl Phenol (OSBP) and Di-Secondary Butyl Phenol (DSBP) w. e. f. 8th December, 2023. Vinati is the only manufacturer of OSBP and DSBP in India with an installed capacity of 5000 MT and 1000 MT respectively.

• NCLT approval has been received for Amalgamation of Veeral Additives Private Limited with Vinati Organics Limited.

• DGFT has imposed Anti dumping duty on import of Para tertiary butyl phenol (PTBP) from South Korea, Singapore, USA for a period of 5 years. Vinati is the only producer in the country with a capacity at 39000MT and it contributes ~17% of Vinati’s revenue.

While Vinati has a superb track record; stock has underperformed during last 2 years due to destocking of its key product ATBS by the customers and delay in completion of capex, which have impacted the earnings. Some positive developments have already happened during this month and more triggers (normalization of ATBS demand and commencement of new capacities/products) could be around the corner. If this happens, Vinati’s position can strengthen with a more diversified portfolio of specialty chemicals products apart from resumption of earnings growth.

Disc: Invested. I am not SEBI registered Advisor/Analyst. The information provided above is for education purpose only.