Elantas beck india

ELANTAS Beck India Limited. is a group company of ALTANA AG. an international specialty Chemical Group with sales of EUR 2 Billion in 2014. and 6064 employees worldwide.
ELANTAS Beck India completed 60 years of operations in India in 2016. The company manufactures a wide range of specialty chemicals in electrical insulation and construction industries.
In pursuit of ALTANA’s global commitment, ELANTAS Beck India develops new products and processes to meet the changing needs of customers.
It operates in two business segments; (i) Electrical Insulations (>80%) and
(ii) Engineering & Electronic resins and materials.
For the year ending December 2016, the Company has achieved a turnover of ₹ 365 Cr and profits of ₹ 54.5 Cr. The operational profits have improved on account of optimizing all the operations of the company. The margins have shown great improvement in the last couple years, by improvement in productivity and savings in operational costs.

The company has an excellent reputation, a proven track record and continues to make improvements. GST implementation and focus on power reforms should benefit the company.

Past performance:
FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
Sales, Cr 274 304 341 344 365
Growth % 2.9% 10.9% 12.2% 0.8% 6.1%
EBITDA , Cr 31 39 42 62 79
Margin % 11.3% 12.9% 12.3% 18.1% 21.5%
Net Profit, Cr 27.6 31.8 31.6 41.8 54.5
Margin % 10.1% 10.4% 9.3% 12.1% 15.0%
EPS 34.8 40.1 39.9 52.6 68.1
Growth % 11.5% 15.1% -0.4% 32.1% 30.5%

Current Situation:
CMP 1750 – 1800
EPS 68.7, P/E ~ 26
Cash EPS 75.3
Dividend 4.5, Div yield about 0.25%
Figures in Crores
Market Cap 1427
Revenues 365
Operating Income 78.6
Net profit 54.5
Cash 17.2
Current Investment 109.3
Current Assets 245.8
Total Assets 291.4
Current Liabilities 64.3
Total Liabilities 69.5
Equity 7.9
Equity + Res 221.9
Debt 5.2


  1. ROE > 25
  2. ROCE ~ 70
  3. Increasing Operating margins to >20%
  4. Increasing Net profit margins to ~15%
  5. High recent EPS growth
  6. Debt free


  1. Slow growth in revenues (mainly due to fall in input prices, benefits passed on).
  2. Price to BV > 6
  3. History of very high dividend payments (87.5 in 2012, 55 in 2013). Current dividend yield is low.
  4. Chinese competition.
  5. Slowdown in end user industry.
    I got interested in the company due to the great improvement shown over the two years in terms of improvement to profitability and the huge improvement in return on capital employed. Fall in crude and slowdown has impacted sales growth. With the implementation of GST, focus on power sector by the Government and slowdown of China, the company should benefit.
    At current level, the stock seems fairly priced. I have just a tracking position.
    This is not a recommendation. I would love to hear views from others.

Thank you very much for the details analysis on ELANTAS BECK… much appreciated.

Even I have been tracking this company because of very strong Fundamental and descent valuation. I have added few words from my side need more expertise

Still it looks attractive @ current market price and valuations

Continuous EPS growth
Continuous sales Growth
Promotor holding 75% (Foreign investors)
PE is 26.20 as against 33.56 industry PE
Dividend distribution which investors attracted
It has very strong R&D and dedicated labs for each business line
Part of Global Specialty Leader: ALTANA Group
Very good management


Certification and awards

Quality System (ISO 9000) 1997 EN ISO 14001: 2004
EMS Successfully integrated into one system in 2009: IMS 
Environment Management System (ISO 14000) 
Occupational Health & Safety System (OHSAS 18000)


Yes… recent performance is indeed commendable. Since it reports according to Dec end, it is out of radar.

Need to track increase in revenues and sustainability of margins.


Thanks for starting this thread.

I have been trying to take out some time to study this in depth. Will post more once done with studying it.

Some off-the-top questions i have been trying to answer:

  • Reasons for high market share? Possible reasons could be it’s a very critical products, but cost is very less as a % of total installation/project cost for elantas’ consumers. (SPECULATION based on reading of various websites)
  • How much of higher profitability is due to efficiency, and what portion is due to low input prices? Is the company at a sweet spot currently and hence such good returns? Will the current profitability sustain?
  • What is the industry structure like? Have to study it’s peers in details, to try and figure out if the company has some competitive advantage.Any idea who would be the comparable competitor company??
  • Was waiting for correction in the price. I find the stock to be expensive as per my valuation considering 10-12% growth and around 15-20 terminal value, which i find to be pretty optimistic to begin with. market is assuming current profitability to continue with 12-14% growth and 18-20 as terminal multiple. or higher growth or higher terminal multiple either ways.

i am unable to figure out why it would sustain the profitability? (bigger concern) what would drive the growth, if any? (secondary) need to dig in a bit more into this.

Would love to hear everyone’s views on the same if someone has taken it up for study.



Price of company is as expected with fundamental… I feel lot of strength involved yet. Once Pune land is sold out… their market capitalization is going to go good …

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Elantas beck has submitted the shareholding pattern of March 2017. Promotors stake is 75% and public 25%… promotors stake has reached highest level and they are maintaining the same from long time … which very good sign of management confidence towards business.

And also important point is company has been continuously paying dividend to its shareholders and next devidend paying date is April 27 2017 45% per share

The promoters were forced to reduce their stake to 75% due to government regulations. The stake was reduced from 88% to 75% in 2014.

Absolutely agreed sir. We have spoken with management once regarding their future business plan… they were very confident

Is there any capacity expansion plans by management sir ?

We are customers to them buying their insulation material ( Varnishes ), they don’t have competition in India .
Dr. Beck is the technological leader in varnish, resins and potting compounds.
There is a German company in the world who also makes Resin/ Insulation.
As this goes into product such as HT Alternators/ Motors the companies will not take a risk of switching .
Hence considering the cost for validation and switch cost Dr. Beck will have the moat.
The German competitors doesn’t have their presence in India, they have few traders appointed for India.
Any rotating electrical part in the world will have winding hence copper and hence varnish for Insualtion.
Dr. Beck is a technological Leader for all the Insualtion class ( B to H) of varnishes.
These products are only used in rotating equipment.
Companies likes ABB, CG, Bharat Bijilee, Siemens, etc…
Are their OEM customers.
They also supply to Copper wire suppliers as well for insulation.
When I spoke to them last four years back they are exporting as well to their other global plants.
Disc: Holding position since 2013, hence may be biased.


ELANTAS BECK reported very strong result … Increase in OPERATING PROFIT… NET PROFIT… and EPS… Compare to QoQ and YoY … any views anyone would be appreciated . Thank you all.

Just another steady quarter. The train chugs along.

Company presentation with lot of info dated Jan 2014

I was wondering about the correction of Elantas Beck price from Mar 2012 to Sep 2013, when the price slipped from 2274 to 378. Is this the after-effects of steep price rise owing to delisting buzz, or anything else?

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q1 results were out recently
Any comments on long term growth prospects going forward?

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Any news update on this company and way forward?

Elantas Beck (India) AGM Note

Date: 10 May 2018

Place: Pune

Following are some of the important points discussed in the AGM of Elantas Beck India Ltd. –

  1. End use industries – Major end use industries are electrical appliances and automotive, with a small part coming from construction chemicals. Company also mentioned that although company’s growth has lagged the GDP, it has been on account of decline in manufacturing activity. However, there was no clear answer with respect to the company’s sales lagging automotive sales. (As per the company, end use market grew at 1.3%)
  2. With respect to the market size, company’s own estimates indicate that Primary Insulation Market size is 24,000 MT, Secondary Insulation is 20,000 MT and E&EM is 15,000 MT. (Company total volumes – 22,800 MT, did not give segment wise volumes)
  3. Positive outlook on pick up in manufacturing activity. Company also spoke of opportunity in EV Market, where their chemicals can be used in car batteries, but for now there is nothing concrete.
  4. Competitors –
    In primary insulation mostly local competition like Harman Bawa Pvt. Ltd., Suketu Organics Pvt. Ltd., and a small presence of Axalta (globally the biggest competitor to Elantas Beck)
    In secondary insulation, again local competitors like Fine Finish Organics Pvt. Ltd., Rotomac, Suketu Organics and a small presence of IVA (a global company)
    E&EM has higher competitive intensity with Atul Ltd., Huntsman Corporation, Momentive Performance Materials etc.
  5. Company’s market share in Primary Insulation in India is upwards of 50%, in Secondary Insulation its upwards of 33% and E&EM, its 18-20%.
  6. In both primary and secondary insulation markets, the organized market share is 90%, while the next level of value chain i.e. Copper wire manufacturers is fragmented.
  7. Company’s exports are 2% (all to group companies) and going forward too, this is not expected to increase, as the company has only been allotted South Asia as its market by the parent.
  8. Imported RM content, which was 50% of RM consumed some years back, has now reduced to 32% of RM consumed and company plans to further bring it down to avoid forex volatility.
  9. Company’s biggest customers are – GK Winding, Ram Ratna Wires, Verrock, Star Engineering – these are all the direct customers.
  10. 50% of sales come from direct customers mentioned above, while the remaining 50% come from distributors. Company has 35 major distributors spread across its important markets which sell to the smaller local wire manufacturers.
  11. Current capacity utilization in wire enamels is around 90%, due to which the company putting up new capacity of around 3400 MT at the cost of 100mn.
  12. New Launches – Company introduced 35 new products in FY17 (including enhancements) which brought in additional sales of 190mn (5% of FY17 sales).
  13. Acquisitions – Company does not wish to acquire any of its domestic competitors since all these companies are at the lower level of the enamel quality spectrum with intense price competition. Company also does not wish to acquire any companies outside its focus areas to diversify since it wants to focus on the core business. With limited market share gain opportunities (already has a high market share and any gain can only by growing into cheaper alternatives), growth avenues are limited. Company claims that its margins are multiple times its competitors.
  14. Along with EBIL, Altana has 3 more subsidiaries in India, but none operate in the same business.
  15. Company is not looking to delist any time soon (it had attempted once in 2009). It is the only listed Altana group company globally.
  16. Company is not very concerned with in house production of enamels by wire companies. As per them, 2-3 companies in India partially produce enamels in house (while also purchasing from EBECK). Globally also, very few players have the capability to produce enamels in house, reasons being – access to technology, lacking scale to produce w.r.t costs and different skill sets required.
  17. Company also attributed the quality of the product to be its biggest determinant of being chosen and said that their products are more expensive than domestic competitors, but did not mention the difference.


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Thanx. This is a dated information. What is latest update?
Also recently they got notice from PCB… Pollution control board. Which happens repeatedly. Any outcomr of it?

Mar06, 2019 - Company is representing to GPCB for withdrawal of the closure notice and is submitting all relevant documents for the same. Material development, if any, concerning the above subject will be intimated to the exchange from time to time.

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