Bhageria Inds is a company involved in manufacturing of dyes, dye intermediates and solar power. It is one of the top three manufacturers of H acid and Gamma acid in India and is backward integrated into sulphuric acid. It is a debt free company with net cash of 27 crores as on March 21. It has a solar business generating 30 MW solar power that generates annual 23 crores EBIDTA every year. It has incurred capex of 34 crores to manufacture J acid and Tobias acid ( import substitute products) . It also has enhanced power capacities to 8000 KW in existing facility at a capex of 15 crores. Company is also exploring a capex of 35 crores to manufacture new products - pigment intermediates . Total capex incurred and planned combined is 130 crores. Exports contributed 31% in q1 fy 22 revenues. Company has posted EPS in range of 14 -16 in past 3 years. Promoters stake is 70.91% .
Coming to its charts, the most interesting element here is the much faster retracement of the previous fall. Stock price started its prolonged fall from 215 in Oct 2016 and bottomed out at 65 in March 2020. This took around 43 months. Post this bottom, it rallied and crossed its all time high of 215 in June 2021, and this retracement to the earlier fall happened in 14 months, which is very fast retracement of previous fall and indicates strength of the trend. Since then it posted its fresh all time high of 297 in July 2021 and underwent a short term retracement and posted a swing low of 233 in August 21 and then rallied to cross swing high of 297 in Oct 21. It posted a new high of 329 and is currently at 290 levels.
Once all the capex kicks in company can deliver good performance. Recently the prices of dye intermediates have had a strong run up and Bhageria being backward integrated can deliver good results. Plus the capex should start contributing soon.
Technically it seems strong with a good chart structure. disc: invested as a techno funda bet.
