The company manufactures Vinyl Sulphone which is used to manufacture reactive dyes for textiles.. After years of lack luster performance, the company has shown tremendous spike in sales and profits..
Some of the reasons are increase in production, rupee depreciation, efficiency measures adopted by the company, revival of textile industryand stability in crude prices i guess..But unable to exactly understand the core reason for such a performance and its sustainability..
Everlight Chemical Corporation, Taiwan; Kyung-in Synthetic Corporation, Korea; OhYoung Industrial Co ltd, Korea; are some of their clients..
Exports are up 84 % in 2013E and 90 % revenues are from its top customers..
|Q over Q||2013 Q1||Q2 %Growth||Q3 %G||Q4 %G||2014 Q1 %G||Q2 %G|
|Sales||22.31cr||-16 %||43.5 %||3 %||10.25 %||36.9%|
|OP||1.23||-37 %||116 %||49%||102 %||155.8%|
CMP = 91.15
1. Short time
3. For 10-20% quick gains and little pe re-rating if any.
( Coming quarters may throw some light regarding sales and profits )
1.Quality n sustainability of business and Client concentration
2. The stock is in PCAS and inconsistency in sales and in tax payment
3. Promoter has already increased his stake to 73.68%. (Who will buy when we want to sell :-))
4. How much can we bet
5. Cant vouch for data in balance sheet
disc- No positions