BSE CODE: 524370 NSE SYMBOL: BODALCHEM
BODAL CHEMICALS was established in 1989 with an initial capacity of 200 MT per annum of basic raw materials for Dyestuff industry. Slowly, it has grown leaps and bounds and now it is an Integrated and Innovative company offering end-to-end solution to the customers globally. It is among the world’s largest manufacturers and exporters of Dyes Intermediates, Dyestuff and Sulphuric Acid, vertically and horizontally integrated, providing product and service solution on fastest possible route to their customers. Its presence is now not only in India but across the Globe exporting nearly 70% of its products worldwide to various clients including several multinationals serving to 50+ countries of its Innovative products and services. It is coupled with the technical know-how & expertise in manufacturing of Dyes Intermediate & other Specialty Chemicals. Company’s growth is propelled with the support of in-house team of technologists, workforce and management professionals.
BCL has its manufacturing units across the Gujarat, where they manufacture different products under multiple delivery systems. At present they have total 9(Nine) Manufacturing units in Gujarat, 4(four) in Ahmedabad 3(three) in Vadodara & 2(two) in Ankleshwar. Products are developed for Textile, Paper, Plastic, Leather and many other specialty chemicals. Another Unit named as Trion Chemicals, which manufactures speciality chemicals and its base products is located at Khambhat, Gujarat. Original Capacity of production in plants of Ahmedabad, Panoli and Baroda is Total was chemicals 1.90 Lakh MT, Dye Intermediates 30,000 MT and Dyestuff 17,000 MT. Starting from a turnover of $92 Millions in 2010, their units have produced at 90% capacity in 2016 with a turnover of $149 Millions.
Management & Shareholding Pattern:
The Company is headed by a dynamic industrialist Mr. Suresh J Patel, who has established himself as a non-stoppable player in this field with assistance from some other Patels like Bhavin S Patel and Ankit S Patel. As on 31-03-17, Company’s paid up equity capital is 21.82 Crores divided into 10.91 Crore shares of Rs.2/- each. The Indian Patels family holds 54.34% shares and NRI Patels hold 9.83% shares of the Company totalling 64.17% as promoter’s stake. Out of the remaining holding of 35.83%, only 22.27% seems to be the floating shares, rest being hold by long term holders like 5.22% by bodies Corporate, 4.41% by Foreign Portfolio Investors. Interesting factor is that in FY17, shareholding of promoters has decreased slightly but all the pledged holdings (more than 66% pledged in 2016) of promoters have been released.
As on current date, the debt equity ratio of the company is healthy 0.38. There are no pledged shares. The company was in losses till 2014 and hence financials of last four years are given below:
Year 2014 2015 2016 2017
Turnover (Cr) 959.50 1045.31 909.95 1236.29
NP(Cr) 30.65 92.01 85.98 128.64
EPS(Basic) 2.81 8.43 7.88 11.79
NPM(%) 3.19 8.80 9.45 10.41
Dividend(%) 10 20 15 25
In FY17, YoY increase in turnover is 35.90%, EBITDA is 40.90% and NP is 49.50%. Growth in total income is due to better price realization of certain Dye Intermediate products coupled with increase in demand in the domestic market and better product mix. Due to management’s efficiency of operation finance cost is also reduced and it has aided to better profit margins.
In the recent years dumping duty imposed by the Govt. of India on Chinese products and closure of many chemicals unit in China, future of Speciality Chemicals is coming out bright for the Indian units and that has been seen in the recent results.
Currently, there is very little risk for holding the shares of this company and the long term growth prospects may propel further in the near future.
Disclosure: I have 1300 shares of this company purchased at Rs.165/-