Vikas Ecotech - Chemical Company

(abhi2525) #203

Checked for few other companies, nothing shows up at t he link.

(Satya Prakash) #204

That’s the problem of govt website. We cannot trust on that. That’s why we don’t , as public, visit there.

(Raghu) #205

Hi Abishek,
If possible, can you share your updated findings, about the demerger etc. thank you…

(Manohar T. Patil) #206

I have received the email for AGM notice. However there is no link to the AR. Could anyone get hold of the AR for current year. Also, any idea on - when the company is declaring Q1 results for FY18.

(rajdesai60) #207

As on today construction at Dahej plant is about to commence.Management is changing their stand frequently about the commission of of Dahej Plant.

( #208

Is there a link for the official announcement of construction starting at Dahej plant from today?

(srinu_poly) #209

Thanks a lot for your inputs on this stock. You please see the below link. Indofil ia an another company providing Organi tin stabiliser for plastic industry.

(rvetri) #210

Friends…Vikas is a co which has a lot of stress in WC even before GST and
with negative OCF…Now with GST, WC will turn to worse, in my view. It is
better to wait how GST impacts them…Though spin off cos are flavour of
the season…currently

(Indie) #211

I came across this company which also manufactures Organotin.

There seems to be a disparity in what Vikas Ecotech states in its annual report about it being the only indigenous manufacturer of Organotin.

I would like to have comments from others on this.

(ravish) #212

How can you say that they are the manufacturer and not trader of Tin Stablizers? Have you confirmed it from any reliable source? In my opinion any trading company can import and provide it localy. I have also came across a company with that product.

(Indie) #213

Look at this link. Khera Chem has been listed as one of the top manufacturers.

Has anyone here done any scuttlebut to verify Vikas Ecotech’s market share?

(Chandra) #214

Good result from Vikas Eco tech.

(Dhiraj Dave) #215

Total Current assets (incl. bank balance) increased by Rs 40 Cr in six months while Current liablities (incl bank borrowing) increased by Rs 10 Cr giving net increase in working capitla of Rs 30 Cr during the period vis a net profit of Rs 19.8 Cr during first half. How does one evaulate this? Is there any free cash flow from operations in the company?

(rvetri) #216

Good question dhiraj… I think FCF is a concern for Vikas…

(ravish) #217

Cash flow and trade receivables are culprit here Dhiraj ji. Company has informed that the money it got from Preferential share placement will be used for further expansion in new plant and capacity addition at existing sites. This increase in working capital may be due to financing of high trade receivables or new plant assets both. If we look at the trend than the trade receivable as a percentage of total sales have come down which is a good sign. Products are outstanding and some are niche in technology and know how. Promoters have always maintained high growth forecast in past and failed but this time they are walking the talking in terms of sales growth and now it is also the time for balancing the balance sheet.
I expect some more of your wisdom here sir.
Disc: Holding

(Ashwin H) #218

Attended the concall on Friday. Here are a few key points

  • Revenue growth guidance of 25-30% over the next 2-3 years
  • Share of revenues: ~58% Polymer Compounds, ~20% Specialty additives, ~22% Trading revenues
  • High receivables in the last few quarters driven by Demon and GST. Expect to improve receivables to 140 days by March and 120 days in the months following
  • Given they are growing and are acquiring business, have had to deal with higher credit. However, other than one case of Rs. 25 Lakhs (which is currently in the process of resolution / recovery), they have till date not had any issue of recovery
  • Expect a government order on use of lead additives in pipes in the next 6 weeks. Hopeful that it will prove positive for them
  • Organotins capacity expansion underway which will double their capacity
  • Fire insurance claim should be processed by end of this fiscal and they should get back about 14-15 cr
  • Mexichem yet to give any order, but will be visiting them in December before finalizing the way forward
  • Demerger and listing should happen by the end of this FY

Overall, felt the management was happy to share any information and answer any question. Need to see how much they live up to the guidance given in the next few quarters

Disc: Substantially invested, might add in the next few months and then wait

(Chandra) #219

Thanks Ashwin. Well summarized.

(ravish) #220

Vikas ecotech is not an another specialty chemical company benefiting from the crack down on Chinese company but it is a innovative chemical company. Innovation is happening here for Indian and for export also. Some of there products like Organo Tin stabilizer, recyled PVC resins, flame retardant chemical for wires and use of Used oil for making valuable end products are some of the niche it is providing. As per the disclosure and statements provided by the company we can say that it is still in a expansion mode and would require capital for further addition of new products and capacity addition. Also the management have been maintaining to have a track on receivables days and expects it to bring at 120 days in next 2-3 quarter or so. We can also see that its customers are MNC and many large Indian Companies and that’s why it can not have pricing or favorable payment terms with them. Some of the products like recycled PVC pipe and products from Waste oil will have high margins and also Eco friendly. In recent conference call management has assured than even though there were huge trade receivables for so many past quarters but no significant leakage has happened. If they are able to manage the receivables than with the growth expected in future,it can be a good investment or else it will be an another chemical company with not so good management. Because if not now then never ever in my opinion they can turnaround to free cash flow.

(rvetri) #221

Ravish… Very informative and appropriate comment…


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