Hello I’m new to the company. Can you please mention why it was reporting losses and what are the headwinds faced by it?
As per my understanding it faced high freight and fuel cost and capex coming live causing margins go down.
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Google “times of India + dye intermediates + demand”
Quite a few articles from last year and early this year
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What is your take on Vidhi speciality considering ?Would you be bullish on it as well?
During tough times, management rewarding themselves generously !!
From - 2023 AR.
From - 2022 AR.
Its good to have component of variable pay associated with performance of the company rather than having fixed pay.
@jitenp sir - How do you evaluate this kind of behaviour ?
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I have always maintained this.
Managements who take higher remuneration (within permissible limits) are better than promoters who take low pay, but siphon a lot.
I have had many experiences like these. I would prefer the former, as quantum is known. In 2nd case it’s a black box.
Also, for many this is itheir only source of income.
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Hi Jiten Sir,
I’ve been looking into Vidhi Speciality recently and observed their fixed assets have nearly tripled in the last quarter, rising from ₹47cr to ₹121cr, alongside a reduction in debt from ₹52cr to ₹40cr. However, the demand appears to remain subdued. I would really appreciate your insights on this situation.
Price is also 3-4x in last 3 years. It is already priced in I suppose
I may be wrong but from the screener chart since Jan 2022 stock hasn’t given any returns, Capex & Debt reduction happened between Mar 2023 and Sep 2023. Correct me if i am wrong.
I have done a comparison between vidhi and dynemic, and find dynemic cheaper to Vidhi:
| P/B | P/S | Capacity- Food Colouring | Dye intermediates | |
|---|---|---|---|---|
| Dynemic Product | 1.77 | 1.23 | 6120 | 16500 |
| Vidhi Speciality | 8.13 | 6.46 | 8100 | - |
Dynemic is going to use half of dye intermediates for captive consumption. Vidhi seems to be costly comparative to Dynemic but execution wise vidhi has done well last few years before that both companies were equally placed. It is possible that costly become costlier and cheap becomes cheaper.
Disclosure: Invested in Dynemic around 275, no sell, buy recomendation
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Vidhi continues to report decent results with impressive recovery in gross margin this time. Vidhi also have a 3x capacity planned in fy25.
Why is Dynemic product still struggling to make good use of their new capacity? If its chinese overcapacity, shouldnt it be affecting vidhi too, which doesnt look to be the case. Hope there are some good updates in annual report which is due for submission by june 30.
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They don’t speak much in AR. Conservative in words. Demand revival will be met with huge capacities built causing increased production. Increase in sale plus margin improvement plus increased realisation !
Finally some positive commentary from the management. Hopefully the worst is behind us now.
Significant margin improvements over the last 2 quarters post the Sep-2023 lows
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In recent con call of Vidhi specialty, they didn’t mention Dynemic products as their competitor. Is there any significant difference in their products ?
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