i agree with you …my comparison with sequent is just to say that one of the best companies in the space if is a benchmark -NGL being so small the return ratio of it is better than them
1 Like
if we are thinking of long term investing in quality stocks ,atleast for me these short term pain doesnt bother me
Again excellent resultsNGL finechem qtr 3 result 280121.pdf (2.0 MB) by NGL
You will rarely get a company with 700cr market cap with such amazing return ratio /pricing premium
6 Likes
Excellent results and management walking the talk. They mentioned 275-300 cr run rate for annual sales in last con-call and have followed up with Q3 sales at 73cr, OPM 31%, PBT 23cr and PAT 18cr. Mr. Market has cheered the results with an upper circuit on Friday in an otherwise weak market.
They seem to be well on track of delivering FY21 PAT of 50-60cr and at last 5 year median PE of 16.5, market cap should be around 820-980cr.
Disc. Holding and planning to add
3 Likes
Plant issued closure by environnmental control board. Any idea how much does this particular plant contribute to revenues ?
2 Likes
This is Unit Alpha and I believe was amalgamated from Alpha Organics Pvt. Ltd in 2014-15.
Unit Alpha: W41C & W42C, MIDC Tarapur, Boisar, District Palghar 401506.
Directorate of Industrial Safety & Health list indicates that the site does ‘MANUFACTURING OF BLACK CHEMICALS’ - not super helpful 
I could not find any details in Annual Reports to the exact products/processes at this site. However, I suspect this site (note that the pollution notice has been given to only 41C and not on 42C plot) is not their primary manufacturing unit in Thane. This is also not the first time a company has been served such a notice. I expect a knee-jerk reaction in markets tomorrow but I am convinced company will bounce back and rectify.
5 Likes
NGL Notice:
B329DD1299A34AE79D17CBA21DCC3834.pdf (636.9 KB)
The same unit had received notices before too for different reasons:
AA06A6F7776344F28B77C5FE367178A6.pdf (695.4 KB) B4150D1877B3487BB63563F361742B96.pdf (927.2 KB)
8 Likes
These are not serious observations, and certainly donot warrant a closure notice. The company should have been served show cause notice and given time to carry out rectifications.
If one does a google search with key words - Tarapur effluent issue etc, one will see that it has been a big problem for last few years. A recent article again highlighted the mess - https://www.google.com/search?q=tarapur+effluent+treatment&rlz=1C1CHBF_enIN921IN921&oq=tara&aqs=chrome.1.69i57j69i59j35i39j69i59j46i433i457j46l2j69i60.1750j0j7&sourceid=chrome&ie=UTF-8
Largely, this is the sad state of affairs at several places. Something similar had happened couple of years back at Kanpur ETP too. Govt bodies need to invest, upgrade and maintain the infra but it doesn’t happen and once they are pulled by NCT or senior authority, they get into action mode. Over last 2 months, most of the companies in Tarapur have been issued notices.
I think the good thing in NGL is that their main plant is ZLD (Zero Liquid Discharge), so it shouldn’t be a huge issue. Its good that they invested into the same. Still there maybe some short term impact on business.
23 Likes
Hi All,
Below are the key points from ICRA’s rating update on Tarapur Plant Shutdown.
Regards,
Yogansh Jeswani
Disclosure: Invested
11 Likes
Another hit by MPCB. This time closure notice for subsidiary Macrotech Polychem acquired 2 year back. https://www.bseindia.com/xml-data/corpfiling/AttachLive/6238bde5-37b4-4349-b114-02debd09ebd8.pdf
MPCB, vide its letter dated 8th March, 2021 has issued Conditional Restart Directions at Tarapur plant.
1 Like
Any update given by management regarding analyst call for Q3FY21 ? I couldnt filing or concall transcripts for this quarter
They do it once in 6 months…so you can expect post Q4 results.
CFO/PAT consolidated 48%. There seems to be some 19 cr increase in Other current financial assets
1 Like
The management promised yearly sales of around Rs 250 crores and they reached Rs 258 crores with a CAGR of 30 percent for the last 2 years. FY 2020 had a depressed revenue due to lockdown from 23rd March, 2020, so we need to see 2 year CAGR growth
Management has walked the talk
2 Likes
Well Ayush bhai, the valuation gap is now actually nil going by PE or PB. My view is it may consolidate around these levels now in absence of any strong levers of growth over next 2-3 years. Awaiting concall.
Disc: Invested
Is it because company is running at a very high capacity utilization or any other reason?
Disc: Invested
Yes, high capacity utilisation and peak margins
1 Like
Q4& FY21 earning presentation - NGL Fine Chem
Provides good clarity on a lot of things including the growth roadmap for next few years.
Regards,
Raj
Disc: Invested
7 Likes