hi JIten
Though they perform well in terms on profit but revenue has not grown.
so i am a bit sceptical abt it. though but bse disclosure show promoter has bought shares in the month of July. which can be a good sign.
but i am waiting for annual report from them to have more info.
@jitenp - Would you have any updates on the capacity expansion and the stage at which it is? I was under the impression that the new facility would be coming online in 2016, but I have not seen any indications about it so for.
I think it will take some more time for new capacity. From AGM the feel is that management is still not sure as to what products they want to do. They are exploring few options. As of now, no clarity. Having said that, current year looks to be better than last year. In my earlier post also, I had indicated that company will struggle for topline growth.
I started this thread and had compared Vidhi and Dynemic and highlighted the gap in valuations between them. The gap has narrowed down and itās good to see that Dynemic has performed much better in this period. Stock is almost in 3 digits and the patient are rewarded.
-Jiten Parmar
I have also been holding it since 50 around levelsā¦any idea when the new capacity is coming up
The company has come up with good set of Q3 numbers. OPM at 18% could have peaked. The promoters continue to buy from open market in small quantities. @jitenp what are your views on the current valuations and business outlook? I also found a pre-feasibility report on their planned unit-3 expansion of about Rs 80Cr.
http://www.environmentclearance.nic.in/writereaddata/FormB/TOR/PFR/24_Nov_2016_155837673WP2U5WMIPFR.pdf
Although this will take a long time to fructify!
Finally something moving on the Dahej expansion. I think all products to be manufactured still not finalized, but broad set identified. Promoters are very conservative, and good thing is they want to be sure, before committing capex. I think 18% margins, quiet difficult to sustain. But they should not go down too much for neat future, barring quarterly blips. Promoters keep buying small quantities. Mildly positive. We need to watch how the company will fund the 80cr capex. I think they will want as much as possible from internal accruals, followed by debt.
Stock has more than tripled from initiating the thread. Sold 2/3rd quantities. Holding the balance 1/3rd at negative cost, off course. Moderators, I hope, my disclosing this in accordance with forum rules. Plz do let me know if this inappropriate.
Great Jiten, your conviction paid off well. Hope you enjoyed the run 
I still donāt feel confident about the promoter quality although the price you bought had sufficient MoS.
Please let me know why u donāt feel confident of promoter quality ? Some of the questions raised, I have already given clarification. Though management didnāt want to give dividends as they wanted internal accruals for expansion, they did give dividend when their expansion plan got delayed.
As I have said before, they are simple and conservative businessman. Havenāt seen them trying to jack up price, meet analysts, investors. I kind of like those kind. I myself never met them, but kept communicating through official channels, and most of the times received honest and proper answers.
As I said before, the entry price was good and risk-rewards ratio was definitely there.
Plz enlighten us on promoter quality aspect.
Good results by Dynemic. Stock has been a 3x in less than 2 years.
This story played out on expected lines. Have taken complete exit at 3x in a little less than 2 years. Will look at it again, when expansion plans become clear.
Hi @jitenp
The stock of Dynemic Products is being beaten down badly since last few trading sessions. It in fact made a low of 101 on 20th. Any particular reason for such a steep fall of 35% in just two sessions?
Are you still tracking the company?
Hi,
As far as I know, no reason for fall.
Having said that, I am in no hurry to add it again, unless plans for Dahej materializes. I will be watching if next 2 quarters margins sustain, etc.
Had a chance to meet promotersā¦ EC approval will be received by December monthā¦ however they wont immediately start the construction workā¦ it looks like a 2020 gameā¦ they even said it may touch 400 if dahej pant gets functionalā¦ its a wait game I guessā¦
Promoters were predicting the future stock priceā¦What if the chemical/dye factories start working again in China by 2020, that will be a negative impact on Dynemic and the speciality chemical industry as a whole.
I am very surprised at this. As far as I know, promoters are very conservative and would not do this.
Sure, promoter predicting stock price is badā¦But the results were goodā¦recently promoter seen buying from the open market in small quantities. A good correction may be good chance to enter. (entered at 45-60 lvls, exited at 140 lvls ,now looking for a reentry) https://stockarchitect.com/tools/insider_trading?security_name=DYNEMIC+PRODUCTS+LTD.
Yes they dont but one of my friends is close to promoters and have been holding dynemic pre-ipo. He had gone to meet to settle one of his old accounts and had this conversation. New plant EC will be by December.
