Q2FY16 seems to be very good, company looks undiscovered by broader market at his point
Long term borrowing = 0
Short term borrowing = 2.9
therefore, Debt = 0
Non- Current Investment = 4.2 cr
Cash = 14.4 cr
Current Investment = 125cr
therefore Cash & Investment = 144cr
Net Profit q2fy16 = 16.6 cr growth = 27%
Market Cap = 512cr
To me it look like at deep discount at 30/-.
I have a query on their announcement dt Augâ15 âPending receipt of approval of TNPCB for consent to operate at higher capacity, utilization of the plants has been restricted.â
If their current capacity is under question for Pollution board how come a big capacity planned by the company will not face such risk in future?
Second in their May press release they had plan to invest Rs 100cr for capacity expansion
But in Sep they signed MOU of Rs 500cr investment which includes power plant as well
Discl - Exited fully in 2 phasesâŚwant to buy again post some clarity on capex
Only thing I will be concerned about it is - âThis huge stockpile of cash is utilized properly and for the interest of all shareholderâ
Any pointer towards promoterâs background?
The company has informed stock exchange the following
Manali Petrochemicals Ltd has informed BSE that the production at both the Plants of the Company remains affected since December 02, 2015 due to flooding and the resultant power disruptions. The plant operations are expected to recommence shortly in a phased manner subject to resumption of normalcy in power supply, material movements, etc. Consequently the overall operations for the quarter and the year will be impacted significantly.
How significant the impact could be?
Thanks,
Ravi S
Disc - No positions, I was analysing this company and thought someone will find this one pager useful.
Hello all,
i have been holding Manali from 18 -19 levels, earlier i was very confident of the potential this co. has given the Crude Oil situation and balance sheet of the company. However, given that all that is already been factored in the last few quarters and i dont see any further triggers in the company - as is reflective in the stock price also, is it prudent to book out of this? it has not really made a solid comeback after Chennai floods and positives are discounted already IMO.
Thanks
I was going through the annual report of manali petro and I have following questions which seems to be left unaddressed by management.
Also I see some red flags in terms of increase in working capital requirements.
Cash and equivalents has decreased by 32% from 94 cr to 65 cr. The main reason could be increase in working capital requirements which is like -
This looks like a deteriorating balance sheet to me.
The major risk to company is from biggies like DOW, BASF who are now importing heavy volumes of polyol to India. Is this the reason they finding difficulty to sell ?
The management has told that they are increasing capacity but did not mention the exact capacity. Need to watch the next quarter closely to see.
Company will increase capacity of Polyol @ 25,000 TPA and take it to 1,50,000 TPA from present levels of 50,000 TPA within 4 years at incremental cost of 100 Cr. With each step of increase in capacity company will generate additional 280-300 Cr of revenue.
No Idea
The offshore Singapore entity is set up for acquiring a company ovearseas
PO is used as a raw material for Polyol and PG which has fixed capacity of 36,000 TPA. Polyol and PG account for 60-65% and 20-25% respectively of total sales.
Thanks Jigar ! I see you are trying to answer my queries. But my query on point 1 is specific to what the company has delivered w.r.t what they have promised. They promised 25000 TPA addition by march 2016 as 1st phase of the 5 year plan but no mention of that in the report which give me a sense that it is not done. They have told that restrictions are lifted by authorities so now they can expand but yet to see that 1st phase coming up.
Regarding point 3, what kind of acquisition they are looking at ? I am not very clear on the plans.
Regarding point 4, you are assuming that they were able to sell entire amount produced of the maximum capacity but I am not clear how much was produced and how much was sold from the report. I feel a bit of detail is required here.
So the Singapore subsidiary swing in action. Though not much information yet but seems they are firm on the their plans for expansion. 120 crore investment to tap 45 countries as claimed by the news article.
Letâs see how this move turns in favour of Manali. Now some action is expected from top line and capacity of the company. Interest cost is another factor to be watched carefully due to the loan they have incurred which could be between 30-50 crores as per my calculation.
Anybody tracking Manali Petro.
Results Out: http://corporates.bseindia.com/xml-data/corpfiling/AttachLive/e02a45b5-adb2-451f-b58f-bcf0eda5060f.pdf
Whatâs your take on it?
Results: Poor. Not happy 
Not expected after they had a lot of good things going for them - Capacity expansion, Notedome aquisition, Anti-dumping duty. Of course, there were some challenges - Oil price rise, Demonetisation, Chennai flood (won insurance claim though).
Not much information available on loss-making subsidiaries. Sold a third of my shares prior to results (call it risk management).
Disclosure: Invested.
Another bad quater. Inspite of acquisition and burning all the cash, the company is not able to improve its sales. Expenses are increasing though. The story is deteriorating in my view. The increased supply of imported Polyol from biggies is eating away margins on one end. Notedom is not delevering any meaningful contribution to revenues and profits so far.
Moreover, there is not much information from management about the situation.
Is anyone else tracking this and have any information available
http://www.bseindia.com/xml-data/corpfiling/AttachLive/b33fa778-51bf-4266-a381-66232ea00224.pdf
Disclosure : less than 2% allocation
Company : MANALIPETC
meeting of the Board of Directors of the Company is scheduled to be held on 27th September 2017, inter alia to consider proposals for fund raising to meet the funds requirements of the Company.
Disc :-Not invested
After one acquisition and using the existing reserves they are looking to raise money for fueling growth. How all this is going to pay off is a thing to watch.
Go through this pdf to understand the subsidiaries.
http://manalipetro.com/wp-content/uploads/2016/08/MPL-SUBSIIDARY-FINANCIALS.pdf
AMCHEM Speciality Chemicals Pvt Ltd, Singapore made 9.04 cr loss in FY17 on the turnover of 69.48 lakhs - Employee Benefits expense (6.23 cr) and Other Operating expense (3.33 cr)
Have to check their financial statements for FY18. What is the purpose of this Singapore subsidiary??
@azadh20
The purpose of Singapore subsidiary is for acquisitions in this segment. However if you check the financials of Notedome which is in page 40 of the MPL-SUBSIIdary-financials.pdf you will find that Notedome actually has a net profit of 31k pounds that means roughly 27lakhs âŚand they bought this notedome for 120crore rupees.
Seemed like a red flag to me. Let me know your thoughts
another redflag kind of thing is pointed on the rent paid.
Business As usual:
They pointed out in their AR17 that they face significant import from Thailand and Singapore, and it got resolved because government imposed Anti-dumping duty. It seemed that they have good results also but the Notedome is like a concern for me.
Let me know your thoughts, ill be happy if someone can disprove this⌠it will be a good buying opportunity
No HoldingâŚin the Manali Petrochemicals.
Notedome made a profit of 1,682,856 pounds (arnd 14 cr) in CY17, not 31k pounds. It is acquired through AMCHEM Speciality Chemicals, UK
Case in point is AMCHEM Speciality Chemicals, Singapore which made 9.04 cr loss in FY17.
Agreed reading the wrong Subsidiary.
According to their Annual report 17 Page 4.
AMCHEM, Singapore continues to explore other
opportunities for acquisition of existing overseas facil
ities to further improve the global presence of MPL. It has
been reported that options for taking up other activities
such as trading, transaction facilitation, business & project
consultancy are also looked at by the subsidiary.
Most of 6.6 Crore is staff salary and âBonusâ. Most probably for the acquisition
rest 3.3 they gave is Professional Fees
