Vital Chemtech (NSE:VITAL) Net-Net Working Capital : ₹8.54 (As of Sep. 2023)

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What is Vital Chemtech Net-Net Working Capital?

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.

Vital Chemtech's Net-Net Working Capital for the quarter that ended in Sep. 2023 was ₹8.54.

The industry rank for Vital Chemtech's Net-Net Working Capital or its related term are showing as below:

NSE:VITAL's Price-to-Net-Net-Working-Capital is ranked worse than
58.81% of 556 companies
in the Chemicals industry
Industry Median: 7.325 vs NSE:VITAL: 9.81

Vital Chemtech Net-Net Working Capital Historical Data

The historical data trend for Vital Chemtech's Net-Net Working Capital 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.

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Vital Chemtech Net-Net Working Capital Chart

Vital Chemtech Annual Data

Trend

Mar20

Mar21

Mar22

Mar23

Net-Net Working Capital

-4.54

-5.04

-10.26

7.44

Vital Chemtech Semi-Annual Data
	Mar20	Mar21	Mar22	Sep22	Mar23	Sep23
Net-Net Working Capital	Get a 7-Day Free Trial			-5.04	-10.26	-	7.44	8.54

Competitive Comparison of Vital Chemtech's Net-Net Working Capital

For the Specialty Chemicals subindustry, Vital Chemtech's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital 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.

Vital Chemtech's Price-to-Net-Net-Working-Capital Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Vital Chemtech's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Vital Chemtech's Price-to-Net-Net-Working-Capital falls into.

Vital Chemtech Net-Net Working Capital Calculation

Vital Chemtech's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Mar. 2023 is calculated as

	Net-Net Working Capital		(A: Mar. 2023 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(305.129	+	0.75 * 382.447	+	0.5 * 134.663	-	481.081
-	0	-	0)	/	23.9511
=	7.44

Vital Chemtech's Net-Net Working Capital (NNWC) per share for the quarter that ended in Sep. 2023 is calculated as

	Net-Net Working Capital		(Q: Sep. 2023 )
=	(Cash, Cash Equivalents, Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(315.161	+	0.75 * 367.036	+	0.5 * 86.349	-	427.808
-	0	-	0)	/	24.100
=	8.54

In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.

This is a conservative way of estimating the company's value.

Vital Chemtech (NSE:VITAL) Net-Net Working Capital Explanation

One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.

Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.

Vital Chemtech Net-Net Working Capital Related Terms

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Vital Chemtech (NSE:VITAL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Vital Chemtech Ltd (NSE:VITAL) » Definitions » Net-Net Working Capital

Comparable Companies

Traded in Other Exchanges

N/A

Address

S. G. Highway, Opposite Karnavati Club, B-406, Mondeal Heights, Ahmedabad, GJ, IND, 380015

Website

https://www.vitalgroup.co.in

Vital Chemtech Ltd is engaged in the business of manufacturing, producing, refining, processing, formulating, mixing, enriching, mining, importing, exporting, acquiring, inventing, buying, selling, exchanging, distributing, and otherwise trading and dealing in all kinds of mixtures, formlations, intermediates, derivatives, compounds, phosphorous based chemicals, fine chemicals, heavy chemicals, valence, inorganic and organic chemicals, source materials, intermediates, ingredients, mixtures, derivatives and compounds. The company's Products include Phosphorus Derivatives, Industrial Chemicals, Specialty Chemicals & Intermediates, Organophosphates, Polymers & Dispersants, and Wellness Products.

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