Ashok Alco-chem is a microcap company listed on BSE is . It is having a market cap of 77cr. (@cmp of 169).
Apart from the manufacture of Chemicals, the Company also commenced trading in some mineral products (Bauxite, Bentonite, Kaolin, Bleaching Earth, Iron ore, Gypsum) mainly for exports from the year 2009 which has given a substantial boost to the top line figures and a ramp-up in revenues as well as profitability.
As per the AR company is focusing on improving margins rather than increasing sales by compromising on margins.
Company has an ROCE of 29.54% and 3yrs ROCE of 32%. Debtor days has been mostly stable at 2 months.
Promoter holding as increased to 54% from 49% through conversion of warrants (@rs 30).
Debt to equity is 0.09 and ROE is 32.05%
Company has been posting good results since last three quarters. Has declared dividend of Rs 1 this quarter. The manufacturing unit posted profit this quarter.
Risk: currency fluctuations