Fairchem Organics - Previously "Adi Finechem"

Stock Opportunities
265

Sharing AR24 notes.

Dimer acid

  • Had developed a process for optimum yield 3-years back which has enabled them maintain their market share in domestic market

  • Started exporting to USA and hope to increase exports in FY25

  • Non-reactive polyamides: used in printing inks, adhesives, paper coatings, etc.

  • Reactive polyamide resins: used in surface coatings & adhesives demand in marine and construction

  • Customers: epoxy hardener, paint, and printing ink

Linoleic / soya fatty acid

  • Had improved quality of product 5-years back

  • Have been able to sell these to another Indian customer for a different application in last-12 months which seem sustainable

  • Both linoleic acid and Soya Fatty Acid are used for making Alkyd Resins which in turn is used in making paints

  • Customers: paint, printing ink, and oil drilling

Isostearic acid

  • Expects to do good business with remunerative prices in Europe and USA

  • Mainly used in Lubricants and Cosmetics industry

  • Only 6 to 7 global manufacturers, Fairchem is the first Indian manufacturer

  • Customers: lubricants

Intermediate nutraceuticals

  • Manufacture (natural) Tocopherols and Sterols – both are intermediate nutraceuticals and are exclusively exported and used in pet foods and food (prevents rancidity)

  • Did limited business in FY24 and will continue with this in future

  • Customers: vitamin E manufacturers

Revenue breakup

  • Domestic: 579.06 cr. vs 614.58 cr. in FY23

  • North America: 34.93 cr. vs 26.31 cr. in FY23

  • Middle east: 1.55 cr. vs 4.63 cr. in FY23

  • East Asia: 0.81 cr. vs 0.81 cr. in FY23

  • Others: 1.96 cr. vs 0 in FY23

Miscellaneous

  • 15% increase in sales volume

  • Capitalized 44.64 cr. of CWIP

  • Top 2 customers: 195.11 cr. (vs 236.07 cr. in FY23), 62.04 cr. (vs 9.62 cr. in FY23)

  • Foreign earnings: 41.25 cr. (exports to 5 countries)

  • Foreign outgo: 58.9 cr.

  • R&D: 16.26 lakhs

  • Median salary increase: 12.05% (21.5% for Nahoosh Jariwala; 2.98 cr. vs 2.58 cr. in FY23)

  • employees: 227

  • Audit fee: 31.15 lakhs

  • Share price: 911.95 (low), 1528.8 (high)

  • shareholders: 32’136

  • Contingent liabilities: 1.05 cr. (vs 0.78 cr. in FY23)

Other expenses

image
image1264×1200 115 KB

Disclosure: Invested (position size here, bought shares in last-30 days)

2 Likes