Kesar Petroproducts

(anubha) #51

Even Meghmani Organics is into CPC Blue space, I saw their AR and noted 86% capacity utiisation and EBITDA margins for that division of 14%. Kesar’s capacity utilisation for FY18 is around 40% and EBITDA margins of 22%. Have to see how they plan to increase the capacity utilisation.

Disc: Invested small portion


(shyamutty) #52

The company’s ROCE has been increasing from -3 to 55 in 10 years
P/E of 5, ROE: 44, ROCE: 55, ROIC: 42
Promoter holding: 63%
Company has good consistent profit growth of 176.22% over 5 years
Stock is trading at 1.14 times its book value with no debt, is the management integrity in question, as they don’t pay any dividend?

any idea why it is trading so low?

source(ratestar and screener)

(anubha) #53

I think couple of negatives contributing to the downfall of the stock.

  1. Planned shutdown of their plant reported last month
  2. Crude oil price increase (main raw material)

Other than the above, there are some reg flags in the accounts as highlighted in this thread by other members in the group

Disc: Invested

(ValueInvstr) #54

Should the falling crude oil prices not help Kesar Petroproducts re-gain momentum?