ASAHI SONGWON COLOURS LTD ( BSE CODE : 532853 ) ( CMP : 141 , FV : 10 )
Corporate snapshot
The Company was promoted in 1990 by Mrs. Paru M. Jaykrishna to manufacture pigments. Company is the leading manufacturer of phthalocyanine pigments (blue) and derivatives in India and one of the fastest growing in the world. Asahi Songwon is engaged in the manufacture of phthalo pigments (one of the largest categories of pigments manufactured in India) comprising CPC blue crude and a range of beta blue pigments.
PRODUCTS :
Applications: About 40% of all phthalocyanine pigments are used in the manufacture of printing inks while the rest find application in paints and plastics.
Manufacturing capacities: The Company’s principal manufacturing facilities are at Padra (Vadodara), manufacturing CPC blue crude and a range of beta blue pigments with an installed capacity of 11400 tonnes per annum.
The Company’s clientele comprises global giants like DIC (Japan), Sun Chemicals (USA), Clariant Chemicals (India) Limited and BASF (Korea).
Entrenched experience: The Company’s two decade-plus industry experience has translated into client retention on the one hand and higher wallet share on the other. • Stringent compliance: The Company’s products have been validated by esteemed MNCs, leaders in their respective spaces (ink, paint and plastic). The Company is registered with the Department of Scientific and Industrial Research operating under the aegis of the Ministry of Science and Technology. The Company’s plants are certified for ISO 9001:2008 and ISO 14001:2004.
Chairperson & Managing Director looking ahead statement in AR 2014-15 :
The prospects for the colourants industry in the next five years appear brightened on the back of rapid growth coming out of Asian countries like India, China and Japan, among others. In Western countries, industries like paints, dyes and varnishes are continuing to do good business, though end-user industries like inks have somewhat slowed. The US is on a path of recovery and Japan is showing signs of picking up, both of which are our main markets. Going ahead, the measures the Company has undertaken are expected to usher incremental growth. We believe that the glut in demand in Europe and China is temporary; things will soon take a turn for the better. At Asahi Songwon, we are attractively placed to capitalise on account of our robust business model, rigorous environment compliance and longstanding customer relationships, which should translate into enhanced value for our stakeholders.
I n the business of pigment manufacture, long-term sustainability is derived from a combination of robust topline growth and high profitability. The Company intends to accelerate product launches to generate higher revenues. The Company intends to reinforce its distinctive profitability focus as well. It will increasingly focus on products that are niche and value-added. Besides, it will select to manufacture incremental products from within existing facilities and without additional capital expenditure. The result is that the Company expects to generate higher returns on employed capital, enhancing surpluses and reinforcing sustainability.
figures in crores FY13-14 FY 14-15 FY15-16P
Net Sales / Income from Operations 300.00 240.00 252
Expenditure -263.00 -203.00 -206
Profit from Operations before Other Income, Interest and Exceptional Items 33.00 33 36
Net profit 14.6 17.7 21.5
Equity Capital 12.2 12.2 12.2
Earning per share 11.9 14.4 18
Dividend per share 3.5 3.5 4
CONCLUSION : asahi songwon doing well and future looking promising . if u see in non promoter share holders specialty chemical majors DIC & Clariant chemicals holds 13% stake combined. Those companies trading at 20 to 25 times for FY16 earnings, if I take 15 times for asahi songwon for FY16 earnings (eps-18) also it should be 270 with in 1 year.