In the context of DRT tie-up, how much of it was influenced by the fire in Anthea Aromatics (with which DRT has 2 JV’s. One from 2007 and other from 2011) as a supplier de-risk measure.
However, on February 19, 2018, DAACPL lost one of its major plant situated at unit no. 2, Roha. The reconstruction of the plant is nearing completion and expected to commence operations by March 2019. The total estimated outlay of around Rs.114.00 crore funded entirely through internal accruals and receipts from insurance claim. As on December 2018, the company had already incurred Rs.75.00 crore towards the reconstruction capex
@james_kerala - This has never respected technicals and if anything, it has behaved contrary to indicators most times. With that caveat out of the way, at this point it is bearish having broken and closed below last low of 335 or so but volumes are very low. There are a lot of weak hands here and no strong hands - forget strong hands, there are simply no hands :-). There is no liquidity and people who had hard stops in terms of price or time are finding no buyers. Not sure how long this will go on but wont be surprised to see this fall further towards 300 on low volumes.
As for the business, I don’t see anything shockingly off with the underlying commodity prices. If anything the retail business appears to be doing well, at least for the cone and retail camphor products, going by Amazon reviews which are building up at a much faster pace than earlier (if this is anything to base decisions off). Even the soap product appears to be picking up. At under 300 Cr market cap, there appears to be some promise here in case any of these pay off 3-5 years down the line as these are products with repeat value that customers appear to like. I find it promising that the cone product which is marketed as a natural insect repellent/room&car freshener is doing well at a time when a competitor like Godrej Consumer is finding it hard to grow. Let’s give it time and see how the story plays out.
The macro fundamentals still seem solid + promoter buying at 500 + investing in creating brands (which will take time to show results) + capex coming on stream later this year = a strong investment thesis. Also, the current price and valuation offers significant margin of safety - in case the thesis doesn’t play out or macros change by that time, I feel we should still be able to get a decent exit.
The annual report is expect by the 1st week of August. A investor presentation is also expected this year. Lets wait and see what’s in for us!
A part of their product description on PaytmMall reads: “For unexpected and sudden wealth, mix camphor clove (lavang) and sugarcane juice and offer to goddess…”
I see few products are there from long. This products is there since June 2017 but all of its reviews are added recently.
Why so?
I think, we need to be careful as the reviews may be fake and came out because company may be started pushing the products online now.
Now, it is to be seen if its effort pays off or not! But we need to disect better of its value of products online. Recent reviews are not the real parameter.
I think, this Amazon’s Choice selection is not neutral. But, even if paid, this can help Mangalam organics. If Mangalam pays for it as I think then it can add to ads cost.
Camphor prices are ruling firm & are only likely to go higher is the general view in the market, So that is not the reason for the current price correction. Perhaps some large investor is looking for an exit. Stock looks attractively priced but has been for some time.
The fundamentals still seem firm as confirmed by @RajeevJ Ji. So the price shouldn’t really be a cause of worry in the short run. Promoter buying is a better sign than the entry of marquee investors imo. Key is to keep tracking quarterly numbers, macro data and local market trends.
Many speciality chemical companies (Atul, Aarti, Fairchem, vinati to name a few) ran up despite the carnage. But most of them are moving sidelines instead of cracking, since the big movers haven’t took the exit yet. In this scrip, as some senior members stated, the big movers are exiting in the last few days (look at the volume in last week vs the last 2 months). Also, the RSI indicates the stock is extremely oversold may be justifying the buying here and there
IMHO, not sure whether the price is preceding the news, if at all any (raising this concern since its back to where it all started, b’coz big movers won’t exit a scrip breaking badly unless there’s something). Also, there’s some buying happening lately, but I feel most of the buyers are on sidelines. The last buying happened at 300s
I was interested, but never comfortable with the daily LC/UCs, being a retail I can’t compete with big folks on exit, which leaves a lot more damage to me. So I better wait for any signs of reversals.
Note: This is purely based on technical, I can be completely wrong.
I feel announcement of results date may change direction of stock movement…
Just a thought…and observation from other companies who were expected to deliver good numbers and have been delivering good QoQ
Gone through some reports on this sector, there is no sign of danger upto now…
Looking at volumes, It seems just a panic selling. No change in fundamental. At fwd PE of 10 it can become 5X. Though its a commodity business, downside seems very limited.
