A Win For Vinati: The Stock That Organically Gave 14,000% Returns

Published by Trinkerr Academy on

If you had invested ₹1 lakh in Vinati Organics 13 years ago, then you could have had ₹1.4 cr+ today! This multibagger yielded over 14,000% in returns. Here’s a quick peek at the company.

🧪 Stock: Vinati Organics Ltd.

🌱 About the Company
Vinati Organics Ltd. was incorporated in 1989 by Vinod Saraf, who named it after his daughter, Vinati Saraf Mutreja (the current Managing Director & CEO).

The company’s first manufacturing unit was set up in Mahad, Maharashtra, in 1991. They produce isobutylene benzene, the prime raw material for manufacturing ibuprofen, a vital bulk drug. Later, another manufacturing plant was established in the Lote district of Maharashtra. Gradually, more chemicals started being manufactured at these two units. Vinati Organics Ltd. is also promoted by Maharashtra Petrochemicals Corporation (MPCL).

The company issued an IPO in November 1991 and commercial production commenced in July 1992. Since then, the company has spent a lot on researching and developing its products. In fact, the company has a technical collaboration with Institut Français du Petrole (IFP) France, one of the largest licensors in the field of petroleum refining and petrochemical processes and catalysts.

📈 Spike Due to Russia-Ukraine Conflict
The speciality chemicals sector saw a huge boom during the Russia-Ukraine war. The reason for this is simple. Europe and China account for almost 60% (as of 2020) of sales of chemicals around the world. With Europe imposing sanctions, the Indian speciality chemicals sector, which used to comprise just 3% of the world’s total supply, saw a spike in demand. In fact, the exports of organic and inorganic chemicals rose 6% YoY to $2.4 billion in March 2022.

Additionally, with the Indian chemicals industry’s value expected to double to $300 billion and several capacity expansion plans underway, many chemical companies have given massive returns to their investors and are emerging as multibaggers.

The price of each share of Vinati Organics Ltd. was trading at ₹15 on August 4, 2009, while they are now trading at ₹2,191.20 as of August 3, 2022.


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