Clariant c

Stock Opportunities
1

Hi,

This is my first post on Valuepickr.com and I should say I am really impressed by professionals likeDonald/ Ayush/ Mahesh/ Hitesh/ Somani, etc and want to thank you all for your contribution on picks like PI Ind, Jubliant Ind, Mayur Uni.

I recently read about the chemicals sector and one pick I found interesting is Clariant Chemicals India.

Clariant Chemicals (India) Limited is one of India’s leading specialty chemicals companiesand (As claimed by company )is the No. 1 player in

  • Pigments
  • Textile Chemicals
  • Leather Chemicals
  • Biocides for Paints

Clariant’s complete business includeTextile Chemicals, Leather Services, Paper Specialties, Pigments (Coatings, Printing and Plastics and Special Applications), Additives, Emulsions, Industrial & Consumer Specialties, Detergents & Intermediates, Oil & Mining Services and Masterbatches.

Reasons which attracted me to this business

  1. Established market leader inspecialtychemicals

  2. MNC available at 6 PE

  3. Zero debt and cash on books

  4. NPM, ROC, EPS consistently increasing over the last 5 years.

  5. Dividend yield of 4.5%

  6. Parent company shares the latest technology

  7. Corrected 10% due to bad quarter results.

  8. Dalal Street has been recommending it every now and then since 2 years.

Attached are the annual reports and presentation.

Corporate presentation: http://www.scribd.com/doc/72188808

Annual Report:http://www.scribd.com/doc/72188956

Annual Report:http://www.scribd.com/doc/72189013

I have gone through the last 2 years annual reports and the latest investor presentation, but couldn’t find any DATA. By data, I mean no clear idea about

  1. what is their market share?

  2. who are their competitors?

  3. what is their moat?

  4. Why is the dip in recent quarter results?

  5. Guidance

It would be great if you guystalk to the management and get complete details about the company.

Note: Historically, this has always traded at low valuations 4x-10x. Is it because of the sector being given a low PE rating? I guess so, as I find no other reason how an MNC which is a market leader with great div. is available at 6 PE.

Regards,

Sandeep