Haryana Leather Chemicals- Specialist in Leather chemicals

Q&A: Questions & Answers
1

Dear Guys,
I don’t have investment here, i want to know the VP guys views about the same. Hence i am posting it in Q&A section.

But going by the story,
Positives :

  1. Promoter Integrity
  2. Domain Experience
  3. Technical alliances with foreign majors
  4. Regular dividend inspite of small cap (9 years)
  5. R&D driven innovation
  6. Attractive valuations, company is only 19Cr market capitalization
  7. Only few players exist in the segment

Negatives:
I can see only China downtrend

Let me know if there is any other section to post this kind of queries.
Note** This is a borrowed idea from smallcapvaluefind.blogspot.com

3

Dear Sateesh,
It has been advised by moderators many times to dig in more depth before posting any new idea on forum.
Just copy pasting few lines from some blog wont help much and rather be a turn off for others.
I request you to please share more about their business, management and valuations from your point of view to make this discussion a worthy one.

Regards

4

Dear Vikas,
I posted it in questions&answers sections to get the other member views. I can copy paste the content from blog but it is disrespect to blogger research work. I am novice and if moderators do feel it is unwarranted request them to delete the thread.

But i just want to know any negatives from others.

1 Like
5

Hi,

1 small question company’s top line has grown by 5% CAGR in last 5 years? have you enquired regtarding same?

what will be growth trigger in future?

i think slow growth can be the reason for lower PE.

Regards,

Ateek

Disc: No investment

6

Yes, but in the current year last 2 quarters are showing improved profit margins.
Establishing dealership network domestically and internationally will be the key growth driver going forward.

Company’s R&D work in acrylics, VOC free polymers needs to be understand from my side.
I am searching the same on net.

7

check the valuation with the peers: NPM is low, OPM is low, Promoter holding is low:

Pasted image742×195 10.1 KB

8

Did anyone have updates from AGM, recently started tracking this.

  1. Sales are stagnant (stagnated for 2 -3 years), is it the time for cyclical uptrend ? i don’t know
  2. Profit margins are expanding since last 2 quarters.
  3. Dividend payout is increased this year.
  4. Who is the major competitor for leather alcoholics segment
  5. Technical collaboration with world majors
    http://www.icapsira.com/en-us/aboutus/icapsiragroup
  6. Only 5 crore equity with 42% promoter stake.

Book value of 54rs, CMP of 33rs, EPS of 4 and PE @8, market capitalization is @16cr and regular dividend player for last 6 years. What am i missing here for reason for dirt cheap valuation @16cr market valuation with annual sales of 40cr and nil debt.

9

Top line growth is muted for last 2 years, recent margin expansion and lesser capacity utilization should be the key factors to be watched for…

Disclosure: Invested with negligible amount so as to track it going forward.