Crestchem Ltd
- Market cap- Rs 40Cr
- PE- 26
- Debt to equity- 0.0
- Divident yield- 0%
- ROCE- 37%
Following analysis is divided between 3 groups:
1. Understading of companies products and it’s Demant
2. Companies and Directors background and future plans
3. Companies finances
Understading of companies products and it’s Demant:-
Company is in the business of Manufacturing / Marketing of three kinds of products groups in the Nutritional Chemical field.
- MCTs
- Lactose Free Products and
- Oil’s and Fat’s water soluble powders
Company claims to be industry leader in their respective fields.
Now lets understand their products in details:-
MCT’s - The structure of triglycerides includes a glyceride molecule with three fatty acids attached. Short chain fatty acids triglycerides have less than six carbons, medium chain triglycerides have 6-12 carbons, and long chain triglycerides have 13-21 carbons. Long chain triglycerides are the most common triglyceride found in the diet.
Medium Chain Triglycerides (MCT) is a dietary supplement and usually used along with medications for treating food absorption disorders including diarrhea, steatorrhea and liver disease. It has been shown that MCT plays a role in lowering weight, and ecreasing metabolic syndrome, abdominal obesity and inflammation. Research has explored the idea that MCTs may be helpful for athletes. Because MCTs are rapidly absorbed in the body, they are a quick source of energy for athletes. MCT are commonly used by people on opposite sides of the spectrum: athletes and hospital patients.
MCTs are a fat source for people who cannot tolerate other types of fats. These fats might also improve weight loss because the body can more easily break them down into molecules called ketone bodies. These ketone bodies can be used for energy.
MCT’s market share
The global medium chain triglycerides market was valued at $763 million in 2021 , and is projected to reach $1,034 million by 2026, growing at a CAGR of 6.3% from 2021 to 2026.
Applications
- BABY CARE
- COLOR COSMETICS
- HAIR CARE
- SKIN CARE
Lactose Free Products :- benefits – Easy to digest : With the addition of the lactase enzyme, lactose free products are much easier to digest meaning less digestive tract discomfort such as indigestion, gas, stomach pains, bloating and diarrhoea.
The global lactose-free dairy market size was valued at $11.45 billion in 2021, and is projected to reach $24.36 billion by 2031, growing at a CAGR of 8% from 2022 to 2031. Lactose-free dairy is a commercial product made from lactose-free milk.
Applications
- BAKERY
- CONFECTIONERY (Candies, candied nuts, chocolates, chewing gum, bubble gum etc)
Oil’s and Fat’s water soluble powders:- To turn a fat or oil to a powder, the oil would need to be emulsified in a solution of gum Arabic . Emulsify is to force two immiscible liquids to combine in a suspension—substances like oil and water, which cannot dissolve in each other to form a uniform, homogenous solution. Although oil and water can’t mix, we can break oil down into teeny-tiny droplets that can remain suspended in the water.
Companies and Directors background and future plans
The Company is planning to invest in new/start up businesslimited liability partnership firm(s), within our overall chemical and related field of operations. One of independent directors, Shri Manojkumar B. Patel who is knowledgeable on new startup
businesses andits procedures, is actively helping company.
Company may provide necessary support by way of technical/manufacturing know-how and such other services, like managerial and financial support and supply of materials to
the LLP(s), in which company Crestchem Limited may join as a partner, in the said LLP (s), in order to expand overall business and to improve our company’s profitability, However the development and negotiation on this front is in preliminary stages.
Median remuneration for the FY 2022-23 (in Rs.) 723500
Number of permanent employees as on March 31, 2023 - 4
Companies finances
- Companies reserve will be positive first time in this FY closing. Compnay is 36 years old but it is only in last 3 years its revenue and profit are visible.
From below image it is visible that reserve are improving and will turn positive this year.
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Company doesnot have any debt on its balance sheet. Company has cash on its balance sheet. In FY22-23 It had Rs 2.27 Cr and in FY 23-24 it has 3.83 Cr which comes down to Rs 12 Per share cash on balace sheet. Company has kept Cash under FD with banks which has maturity before 12 months.
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Advance given for purchase of Land -Rs 7.5 lakhs
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Trade receivable is mostly unsecured.
Technical view-
Company seems very Volatile in price movement and if one wait to buy at good price can get the chance to buy. Compnay has fallen more than 60% 3 times and 40% one time in last 4 year.
