Dynemic Products


(sumitg04) #62

Promoters were predicting the future stock price…What if the chemical/dye factories start working again in China by 2020, that will be a negative impact on Dynemic and the speciality chemical industry as a whole.


(Jiten Parmar) #63

I am very surprised at this. As far as I know, promoters are very conservative and would not do this.


(josephseby) #64

Sure, promoter predicting stock price is bad…But the results were good…recently promoter seen buying from the open market in small quantities. A good correction may be good chance to enter. (entered at 45-60 lvls, exited at 140 lvls ,now looking for a reentry) https://stockarchitect.com/tools/insider_trading?security_name=DYNEMIC+PRODUCTS+LTD.


(MightyTechy) #65

Yes they dont but one of my friends is close to promoters and have been holding dynemic pre-ipo. He had gone to meet to settle one of his old accounts and had this conversation. New plant EC will be by December.


(Nikhil Goyal) #66

Hi,

Does anyone have an update on when the Dahej plant will start production?


(Parag) #67

Just read the annual report. It is mentioned that they are waiting for Environmental Clearance and as soon as it is complete, plant work will start.

Companies fundamental still looks good but just trying to find if it is good to buy at this price levels?


(Jiten Parmar) #68

It seems exit was good in this company. Will relook at it after expansion plans are clear.


(Jalal Funds) #69

very good analysis from Dr. Vijay Malik on Dynemic Products


#70

Dynemic results looking decent: http://www.bseindia.com/xml-data/corpfiling/AttachHis/4dccac1e-92c9-4aea-ace2-bda6d7efdb26.pdf
Bottomline at 4.6cr is up 50% yoy. Sales up from 33cr to 39cr yoy. “Property, plants and equipments” are at 44.9cr for sep 17 compared to 33.6cr for mar 17. Borrowings have reduced from 25cr to 18.5cr. At around 220cr mcap, valuations looking good. Promoters have last bought in Oct. If we can get some info on the planned expansion, this could be interesting.


(utsavbasak) #71

Brief Background:

Dynemic Products is a manufacturer of food coloring.

Plant Locations:
Unit I: GIDC Estate, Ankleshwar, Gujrat
Unit 2: GIDC Estate, Ankleshwar, Gujrat
Unit 3: (Under Construction) Dahej, Gujrat

The promoter shareholding in the company has increased 0.30% since last year, and it now stands at 39.64%. There is no mutual fund holding in the company, which is a red flag. 37.75% of the holding is held by retail investors who hold more than 2 lacs worth of shares, 14.68% of the shareholding is held by the retail investors who hold less than 2 lacs worth of shares. The promoters hold the company through a holding company Dynemic Holding Company Ltd, and has been increasing stake

Comment: It seems that there is not a lot of equity in retail shareholder’s hands. This can prove to be a red flag as that can result from a greater influence of stock operators in the company.

P/L Analysis:

PL

YoY sales growth for the company has increased by 15% along with a healthy improvement in Operating Profit Margin.

B/S Analysis:

The debt equity ratio has reduced steadily from 0.52 to 0.34.

The cumulative PAT over the past 10 years stands at 64.10 Cr, compared to the Cash Flow from operations which stand at 54.98 Cr. This implies that the company has been realizing its profits effectively.

BalanceSheet

The debtor days had increased sharply in Mar-16, however the company has reined it in during the current financial year.

The Balance Sheet shows the company has been reducing its debt YoY, and has been increasing. Interest costs are negligible.

QoQ

The company has displayed stellar improvements compared to its previous quarter.

Peer Comparison:

The only other company in India in this space is Vidhi Specialty Chemicals. For a detailed peer analysis visit: http://www.moneycontrol.com/news/business/stocks/for-food-color-cos-the-next-trigger-will-be-adding-capacity-after-a-robust-earning-season-2450861.html

The market seems to be pricing in the capacity expansions that Vidhi is set to undertake. The expansions planned for Dynemic Products are yet to be priced in, because of some pending environmental approvals.
Conclusion: Considering the gap in PE between Dynemic Products and Vidhi Specialty Chemicals, it seems as though the market is waiting to get clarification from Dynemic Products on the Dahej Plant status.

Any others following this company? Any views?

Please follow my blog: http://thebasakiantradeoff.com/dynemic-products-analysis/

Disc: Invested


(KK) #72

Thanks for reviving the thread Utsav.

The co has hit an upper circuit today. Does anyone have any updates on capacity utilization and status of the capacity expansion?

IMO this stock should show good appreciation once capacity exp status is clear as market has priced in the capacity expansion for Vidhi Specialty which is now trading at PE of around 30 whereas Dynemic is ~15


#73

Results looking good -http://www.bseindia.com/xml-data/corpfiling/AttachLive/71810af0-cb45-4a96-8ff5-376d32457190.pdf
topline up 40% and bottomline 50% yoy


(anujgupta) #74

this company is available at a discount. why is the market not marking its true valuation


(Gaurav Agarwal) #75

Company has not announced any expansion plan. In fact they are quite opaque about when their Dahej expansion is coming on stream. Without any expansion and any other trigger how company’s topline has increased by 40% is a surprise to me.


([email protected]) #76

Can this be due to the increase in price of the product that is being sold. I think that could be one of the reason.
Also can any one please provide the current utilization and the expected utilization when Dahej plant comes on stream.

For better understanding I was going through the AR and while comparing the cash flow of both Dynemic and Vidhi for FY17 and found Dynemic to be better.

Senior forum members can correct if my observation is correct and provide your valuable inputs.

Disclaimer : Not invested but studying


(utsavbasak) #78

Is anyone going to the AGM of Dynemic Products. That is the only way to get some answers.


(phreak) #79

Market seems to have taken this quite badly. Does anyone know how bad it actually is?

Disc: Interested


(shreys) #80

In January 2009, 41 business units were served closure notices.
Almost all of them started operating by May, 2009 post submission of improvement reports to the Gujarat Pollution Control Board. Failure to do so would prevent resumption of production.
I’m inclined to believe that the company, after some time will be granted permission to resume production after it demonstrates its intention to adhere to the norms.
A couple of quarters could be very bad which will lead to further price hammering. But, shouldn’t affect long term prospects.


(Sagar Bhadury) #81

I sent an email to the comany cfo and got a reply…

My questions were

  1. What is the reason for closure? How serious is this? How much effort and time would you need
    to comply to the norms set by GPCB?

  2. How long have been the unit been closed as your communication to the exchange regarding the shutdown was late.

  3. How is it going to impact our topline in Q1 FY19. Can you please explain.

  4. Does our topline get impacted in the upcoming Q4 results due to this shutdown?

HERE IS THE RESPONSE AFTER THEY VERIFIED MY IDENTITY

Dear Sir,

Asking for your identity is right of a Company before giving reply because
for public we had already disclosed at Stock exchanges and if any
shareholder is asking it’s for our record purpose.

There are norms of GPCB regarding water effluent and if there is minor plus
or minus they give closure. Nothing serious and norms has been complied
already but due to procedural aspect it is taking time, nothing to worry.

We are expecting to resume the work by week end and there is no late to
communicate but we were in process what was asked by GPCB and were hoping
that the closure would be withdrawn as the issue was not so serious.

May be Q1 results would get affected but it would be covered up in full FY.
And Q4 results are not affected.

Best regards,
Varsha Mehta
Company Secretary and Compliance Officer

Dynemic Products Ltd.
B -301, Satymev Complex-1, Opp. Guj. High Court, Ahmedabad 380060,India
Tel : +91 79 27663071/76 Fax : +91 79 27662176
Email : [email protected]
Website : www.dynemic.com ; www.foodcolor.net


(utsavbasak) #82

Can you ask about the tentative schedule their up and coming plant at Dahej is to come into operation?