aksarchem india ltd
manufactures of vinyl sulphone fy 15 with 182 cr revenue and 16 cr net profit and after amalgamation of cpc green division from asahi songawan ltd can it post a better result this year available at 3 evebita with a debt of around 22 cr GR improved to 65 cr the fy 14 cash flow around 22 cr
bhageria dyechem ltd
again a vinyl sulphone manufacturer also manufaturing agro chemical and pharma intermediate fy 15 revenue at 412 cr and net profit at 36 cr debt reduced to 19 cr cash flow at 34 cr
can anybody please guide me whether this two could be considered as cyclical uptrend stocks both are available at resonable pe low debt and good growth. please guide
Hi Adrian, re Bhageria Dyechem - It will be helpful to have more information on product profile and revenue visibility.
I did prelim analysis, below are my takeaways -
- Revenue, operating profit and operating profit margin are extremely volatile.
- Website and annual report are not informative.
- Promoter shareholding is at ~45% with no pledge.
- Dividend yield of 3.33% (Rs. 5 dividend on CMP of Rs. 150).
- Mgmt. now plans to foray into food processing business as well - capex, growth plans are not shared.
The management of Bhageria Dye Chem in 14-15 annual report has stated that they wish to diversify into power generation and food processing.
My question is why would a company engaged in manufacture of pharma API (as stated on their website) would like to diversify into power and food?
why both these stocks are spiraling down?
anyone still tracking, the results are coming good but margin impact is there