H1 FY20 results: https://www.bseindia.com/xml-data/corpfiling/AttachHis/b79674bf-0fc5-41b7-b910-33146b6c3300.pdf
Growth looks decent adjusting for the acquisition last year, decent ROCE as well.
Request more experienced members who are following the company to share their feedback on the results. Also, if anyone could share more qualitative aspects of the business like competitive advantage, any moat etc.
(discl: invested)
Is it still listed only on the SME platform or has it shifted to the main board?
@akja, really appreciate your information on Valiant. However, i struggle to understand their shareholding pattern. There several main promoters and then I also see few of Amarjyot management and Gogri family members categorized under public shareholders. Any idea,
Disclosure: No investment (Just tracking)
Yes, it is listed in SME platform only.
@masonicinvestor (Nagpal ji), or any informed senior investors in Valiant, could you please help me with what is the actual promoter holding % of Valiant Org? As per latest share holding pattern, it sounds very confusing between Valiant, Aarti, Amarjyot family names spread between promoter and public shareholding? Secondly, the stock has corrected significantly in spite of good results, M&A etc. Any specific reason for such a fall? Appreciate your knowledge. Thanks.
Discl: No investment
In my opinion, because of restructuring, merger business and not so much growth in last H1 etc, people are confused. Though from march-19 to H1-20 assets has been increased significantly, which indicates that H2 result may be very good. If this hapen, the price will rally again.
I think the stock is hit by 3 factors.
Valiant Organics is in its growth phase with their organic and in organic expansion.
Its debt equity ratio stands at 0.21 . Considering Chloro Phenol production capacity is being enhanced from the current 4,800 MTPA to 18,000 MTPA by 2020 â which
means a nearly four-times rise in capacity within a span of two years, their debt gearing is reasonable.
With the sales growth of 127% , 93% of ROCE and able management who know their business, market cap is bound to grow in the years to come.
Thanks Raj, for your views. However I fail to understand their promoter share holding pattern. Few names appear as promoters and few under public. Why so much ambiguity in terms of disclosure?
Management , in my opinion, is honest and with Aarti pedigree, complex SHP is not a serious issue a long as they walk the talk.Honestly speaking , I am not able to give any opinion on the SHP as I am not an expert on Company Law.
Disclosure : Invested from low level and hence my opinons are biased.
Agreed with your view on Aarti etc. However, Promoter shareholding plays a lot on the investor sentiment, hence i am curious. Also its been a while on the company updates on their proposed capacity expansions and EC from authorities. I am only aware that they have a partial EC and they have trial production. Any ideas whats the update on the EC and have they started the commercial production? Also Chloro Phenol product doesnât seem to be a monopoly product in India, so then what is the moat of this company then?
Discl: No investment. Just tracking
Letâs not be over-confident. As we speak, there are rumours of IT searches at Aarti Ind premises
Yeah, I just came to know about it few minutes ago. Such news really doesnât look good for the investors and for the reputation of company and promoters. Fingers crossed.
Hello, Anyone has an update on how company is affected by the Virus situation? We have not seen any recent news about Valiant. But price looks good around 1000 levelsâŚ
Valiant Organics Ltdhas informed BSE that the meeting of the Board of Directors of the Company is scheduled on 08/05/2020 ,inter alia, to consider and approve Audited Financial Results for the Half year and year ended March 31, 2020.
Valiant Organics Limited H2FY20 Results
H2FY20 Sales down 8.5% to Rs 332.56 Cr. from Rs 363.74 Cr in H1FY20.
Margins for H2FY20 at 23.2% Vs 29% in H1FY20.
Net profit down by 25.92% for H2FY20 at Rs58.94 Cr. Vs Rs79.57 Cr. in H1FY20.
Company has large capacity expansion in progress.
Company has now chosen to provide for tax at new 22% rate.
The company has also approved the long awaited proposal of Migration of Shares of the Company from SME platform to MainBoard of BSE.
Is there more info on what the size of expansion is compared to current capacity after acquiring another business as well as what the demand is for products
Whatâs the point of expansion if sales are down ?
The company has leadership in Chloro Phenols and is expanding capacities from 4,800 MTPA to 18,000 MTPA,for more information please go through the annual report.
p-Aminophenol(PAP used to make Paracetamol) capacity is being expanded at Jhagadia.
Sequentially sales are down for H2,only the management can give the exact answer to that the question.
It typically takes a few months to ramp up production to optimal levels.
The company also exports to China,so maybe they faced some disruptions.
And while sales are down,volumes may not be and since the company has a large bouquet of products,maybe the product mix tilted toward the lower value products.
I think the Companyâs large capacity expansion in progress can be understood from the balance sheet also. Capital Work-in-Progress is of Rs.129.12 crores (FY20). The progress seems little slow.
@Krishna1, Could you please explain the following:
The increase in the asset from FY19 to FY20 is 652-448= 204 crores. If we subtract CWIP of 129 crores. The increase in Assets is almost 75 crores. Still, revenue has not increased. Is the business slowing down? I have not understood.
