This Smallcap Specialty Chemical Stock Announces a 1:5 Stock Split!
















The company continues to improve the efficiency of its working capital, which translates into a reduction in inventory and debit days.





Vishnu Chemicals Limited epitomizes high performance specialty chemical manufacturing, with a strong market leadership position and an intelligent symphony of backward and forward integration, to manufacture world-class products focused on diverse needs and aspirations of its customers in more than 60 countries.


The company, while announcing its quarterly results on Monday, said its board had approved the proposed 1:5 stock split or sub-split. This means for a division of 1 share with a nominal value of Rs 10 each, into 5 shares with a nominal value of Rs 2 each. The rationale for the split is to improve capital market liquidity, broaden the shareholder base and make shares more affordable for retail investors.


In Q2FY23, the company continues to report record quarterly sales, EBITDA and PAT. Consolidated domestic and export sales continued their growth trend, growing 57% and 53% year-on-year. Expansion of +245 bps in EBITDA margin YoY and +250 bps in PAT margin YoY in Q2FY23. The unwavering focus on manufacturing has led the company to be a global leader in terms of gross asset turnover and ROCE among its peers. Gross asset turnover and ROCE reached the highest levels of 2x and 35% higher, respectively. The company continues to improve the efficiency of its working capital, which translates into a reduction in inventory and debit days.


The stock jumped over 134.63% in the last year and as a result it turned out to be a multibagger. Over the past six months, the stock has risen almost 19%.