Paushak Ltd. - Alembic's agrochemical business


(Nikhil Jain) #63

@Gaurav_Agarwal

That is one questions for which we should seek advise of seniors.

@Donald, @ayushmit, @basumallick can you guys please advise us on what shall be done when management turns evasive to our queries at AGM?


(aniketdharamshi) #64

The management cannot be evasive to queries at the AGM by mandate and the Amin family is not known for doing that. Especially Udit Amin will not be running away from questions. Anuj and I work at the same firm, we shall be attending the AGM and all of these queries can and will be figured out. We just need to format them properly and try to find answers before just asking questions at the AGM.


(mukesh) #65

Nowadays this management is assertive in business activities paticularly where margin are good which is very clearly evident in their marketing activities for cardiac diabetic division of Alembic…


(Nikhil Jain) #66

Here is a compilation of all the questions that we have come up with so far.

PaushakLtd.-Unansweredquestions (1).pdf (41.8 KB)

I hope I’ve included all the questions asked by all of us. Feel free to edit/add questions as you see fit.


(Chitresh Lunawat) #67

They should have give investor presentation and have a con call. What about the plans after the current capacity expansion?


(huriasahil) #68

Can we add a question related to substitute products or is there any way we can try to find answer of this by our own. As paushak is among market leaders in its sub industry( as mentioned on this thread) and it is a very small company, i think there are other products which can substitute paushak’s product. In that case company will loose its competitive advantage from regulatory barriers and then we should not expect much pe expansion


(Nikhil Jain) #69

@huriasahil

Can you please specify the substitute products and their advantage over respective Paushak products?


(huriasahil) #70

@NikhilJain this is what i want to know actually and that is why i was asking folks to add a question related to this


(JKS) #71

Gravity defying run…esp today 15% up…what is happening?
PS - this is not a buy/sell reco. pl do your due diligence
Invested. small % allocation…views might be biased.


#72

@Kalyani

Paushak is in the process of implementing an expansion from 150 tonnes per month to 400 tonnes per month. This will probably increase their sales and profits. To go by the laws of economics, large scale economies may also result in increase of profit margins. Last full year’s EPS was Rs.40.52.

Disclaimer: This is not a recommendation to buy. I’m invested in this stock.


(RAHUL KUMAR) #73

Apparently HDFC sec has suspended the scrip in the trading :frowning: and therefore no trade possible on its platform… Any ideas why ?


(Nikhil Jain) #74

Use a better broker. I personally use Zerodha


(Chintan) #75

It’s a P group company, which HDFC sec does not allow to trade, unless you acquired some shares through HDFCSec and want to sell out.


(NMB) #76

The AR was coded and clearly mentioned that the company expects good growth in coming quarters. They are also entering a new vertical which will aid growth in FY16.
They have already bought plant and machinery worth 9cr according to AR which means expansion is underway.
Let’s hope we get our other queries answered at the AGM. Great effort everyone.


(Nikhil Jain) #77

Alright friends, I have received some wonderful feedback, which has helped me refine the questionnaire. Thanks to Sagar, Sreekanth and Chitresh I was able to modify the list of questions, for the better (I hope).

Here is the updated list of questions
PaushakLtd.-Unansweredquestions (1)-1.pdf (43.6 KB)

Please take a look and provide your valuable feedback.


(Nikhil Jain) #78

When management said that they are working on isocyanates, I’m not sure if they meant to address this market

http://www.marketsandmarkets.com/PressReleases/isocyanate.asp

I’ll like to know, though.


(Arpan) #79

I believe you need to have high level of technical expertise to produce MDI and TDI on mass scale,there are only 2 players in India BASF (inaugurated MDI splitting plant last year in 2014) and Gujrat Narmada (only into TDI not MDI) both BASF and GN plants are in Dahej Gujrat,It needs to be emphasized that demand for MDI is much more compared to TDI.

I dont think Paushak has these capabilities, to give you an example Govt owned Hindustan organic chemicals, Manali petrochemicals, ICI India are making efforts to produce MDI and TDI in India but have failed http://www.dsir.gov.in/reports/techreps/tsr121.pdf, if Paushak intends to do this in the future then it would be massive news as there are very few players in this field at global stage.

If you frequent Mayur Uniquoters thread you might have gathered that there is huge demand for Polyurethane in India,interestingly you need MDI/TDI plus Polyols as RM for its production,in India we have capabilities for Polyols(e.g Manali Petrochemicals) but unfortunately not for MDI/TDI.

I would request those attending the AGM,to ask these questions on isocynates.


#80

HDFC has not recently ‘suspended’ trading in Paushak. They have not allowed it for a very long time. HDFC maintains an arbirtary list of stocks they don’t allow you to trade in because they consider them ‘risky’. Paushak is one of them. They don’t care that Paushak has the promoter that Alembic Ltd and Alembic Pharma has; Chirayu Amin and that their market cap is over Rs.4000 crores.

Paushak was not allowed even when it was a fraction of the current price. Also HDFC sets limits to how much you can buy. There are some stocks quoting at 10-15 rupees which you cannot buy more than 1000 shares of, in a day. The same applies to selling.


#81

@chintans
What is a ‘P’ group company and how can HDFC decide which stocks you can or cannot trade unless their decisions are based on SEBI’s orders?

@NikhilJain Please put forth the suggestion that Paushak issue bonus issues, expand its equity capital and become eligible for listing on the National Stock Exchange.


(Chintan) #82

@vic
Go though these links on BSE and HDFCsec.
I don’t know the rationale behind this, but faced the same problem with another scrip earlier.