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Vishnu Chemicals (BOM:516072) Graham Number : ₹201.27 (As of Sep. 2024)


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What is Vishnu Chemicals Graham Number?

Graham Number is a figure that measures a stock's fundamental value by taking into account the company's earnings per share and book value per share. The Graham number is the upper bound of the price range that a defensive investor should pay for the stock. According to the theory, any stock price below the Graham number is considered undervalued, and thus worth investing in.

As of today (2024-12-14), the stock price of Vishnu Chemicals is ₹407.15. Vishnu Chemicals's graham number for the quarter that ended in Sep. 2024 was ₹201.27. Therefore, Vishnu Chemicals's Price to Graham Number ratio for today is 2.02.

The historical rank and industry rank for Vishnu Chemicals's Graham Number or its related term are showing as below:

BOM:516072' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 0.28   Med: 1.43   Max: 3.07
Current: 2.02

During the past 13 years, the highest Price to Graham Number ratio of Vishnu Chemicals was 3.07. The lowest was 0.28. And the median was 1.43.

BOM:516072's Price-to-Graham-Number is ranked worse than
63.31% of 1142 companies
in the Chemicals industry
Industry Median: 1.54 vs BOM:516072: 2.02

Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.


Vishnu Chemicals Graham Number Historical Data

The historical data trend for Vishnu Chemicals's Graham Number can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Vishnu Chemicals Graham Number Chart

Vishnu Chemicals Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Graham Number
Get a 7-Day Free Trial Premium Member Only Premium Member Only 47.06 64.87 119.00 187.10 194.62

Vishnu Chemicals Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Graham Number Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 211.07 - 195.72 - 201.27

Competitive Comparison of Vishnu Chemicals's Graham Number

For the Specialty Chemicals subindustry, Vishnu Chemicals's Price-to-Graham-Number, along with its competitors' market caps and Price-to-Graham-Number data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Vishnu Chemicals's Price-to-Graham-Number Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Vishnu Chemicals's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where Vishnu Chemicals's Price-to-Graham-Number falls into.



Vishnu Chemicals Graham Number Calculation

Graham Number is a concept based on Ben Graham's conservative valuation of companies.

Vishnu Chemicals's Graham Number for the fiscal year that ended in Mar. 2024 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*106.541*15.801)
=194.62

Vishnu Chemicals's Graham Number for the quarter that ended in Sep. 2024 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*115.703*15.56)
=201.27

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Vishnu Chemicals  (BOM:516072) Graham Number Explanation

Ben Graham actually did not publish a formula like this. But he wrote in The Intelligent Investor (1948 version) regarding to the criteria for purchases:

Current price should not be more than 15 times average earnings of the past three years.

Current price should not be more than 1.5 times the book value last reported. However, a multiplier of earnings below 15 could justify a correspondingly higher multiplier of assets. As a rule of thumb we suggest that the product of the multiplier times the ratio of price to book value should not exceed 22.5. (This figure corresponds to 15 times earnings and 1.5 times book value. It would admit an issue selling at only 9 times earnings and 2.5 times asset value, etc.)

Unlike valuation methods such as DCF or Discounted Earnings, the Graham number does not take growth into the valuation. Unlike the valuation methods based on book value alone, it takes into account the earnings power. Therefore, the Graham Number is a combination of asset valuation and earnings power valuation.

In general, the Graham number is a very conservative way of valuing a stock. It cannot be applied to companies with negative book values.

Vishnu Chemicals's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Sep. 2024 )
=407.15/201.27
=2.02

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Please keep these in mind:

1. Graham Number does not take growth into account. Therefore it underestimates the values of the companies that have good earnings growth. We feel that if the earnings per share grows more than 10% a year, Graham Number underestimates the value.
2. Graham Number punishes the companies that have temporarily low earnings. Therefore, an average of earnings makes more sense in the calculation of Graham Number.
3. Graham Numbers underestimates companies that are light with book.


Vishnu Chemicals Graham Number Related Terms

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Vishnu Chemicals Business Description

Traded in Other Exchanges
Address
Road Number 8, Film Nagar, Jubilee Hills, Plot Number C-23, Hyderabad, TG, IND, 500 096
Vishnu Chemicals Ltd produces a variety of Barium and Chromium chemicals including Basic Chromium Sulphate, Sodium Dichromate, Potassium Dichromate, Chromic Acid, and Chrome Oxide Green. The company is involved in the business of manufacturing, marketing, and the export of chromium chemicals and other specialty chemicals. The company's products find application in pharmaceuticals, electroplating, ceramics and tiles, wood preservatives, pigments and dyes, refractories, and detergents. The firm's geographical segments include Domestic and Overseas. The company generates the majority of its revenue from the Domestic market.

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