Terpene still contributes nearly 85% of their revenue ,5% synthetic resins and 10% Retail Operations.
Camphor from their terpene operations contributes 80% of their total revenue continues to be in demand with wuhan virus pandemic as well because people didn’t stop praying and this contributed well to MOL
Lets discuss Terpene Startegy then. So what MOL does in its Terpene Operations is that it sells the end product as shown in the below image that is Camphor from Pine Tree.
So now what they are doing is that they will also sell the various intermediates in this whole value chain like Camphene for Paint, Resin and Fragrance Applications – Iso Bornyl Acetate and Isoborneol for the fragrance industry . This is their terpene strategy. Also manufacturing products such as Pinene and Camphene derivatives, which present nicher and more specialised opportunities with healthier margins.
This will also help this company to start making value added products from a mere commodity business.
Synthetic business discovered a slow down due to less demand in the tyres and adhesives.
Their synthetic resin strategy is that in synthetic resin segment they have 3 products Terpene Phenolic Resin ,Alkyl Phenolic Resin and Rosin Modified Resins .
So on Terpene Phenolic resin they are trying to increase the range so that they can cater the domestic market needs.
On Alkyl Phenolic resin they are understanding customer pain points and give tailor made products.
On Rosin Modified Resins they are improving their product quality to the international standards so that they can start exporting.
Despite Lockdown their Retail operations business soared and reported good numbers
Commodity to Specialty (As the technical projects in derivatives complete)
B2B to B2C (Already 10% of turn over - with vision of more than 50%)
Improved capacity over last two years have not been contributing to sales yet, but can happen soon.
Strong financials and ability to fund branding initiatives from earnings of retail.
Positive cues from above can easily outweigh negatives from camphor price fluctuations and raw materials variations.
if you discount the cash in hand, you will have a well running FMCG and specialty chemicals company at cheapest valuation available in the market. In another three years, once the positives play out more, I can’t imagine the share trading at current dirt cheap prices.
Excellent results with softening margins PBT (~21.xx%) and PAT (15.7%). Also capacity expansion and technological improvements completed. Positive developments.
Revenue up by 35% QoQ
