BTW, who is going to attend AGM? Is the AGM taking place in Gujarat?
I think so. Alembic group is based in Vadodara/Baroda.
Great! I request some of the members from the area to go there and ask for some clarity on the business with some projections etc.
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Company has uploaded Annual report 2014-15 on the website. I see no mention of expansion or expanded capacity.
Once again the management doesnât speak of added capacity.
Although when we check page no. 42 of the AR, we can check details of the tangible assets of the company. Buildings have almost doubled over last year, while plants and machinery have grown by 40%+.
Sadly, there is no talk from management. Hence no clarity on future course of company. AGM seems like our only chance.
Hi,
The tangible assets are doubled.And they have spend 84,609,352 for the purchase of fixed asset . So is the expansion done and they are only awaiting approval??
They are sitting on lot of cash and currently invested in liquid funds and some in their associates for meagre 9 % returns.
Managment Commentry:
The Company has sustained its growth in the pharma intermediates business by increasing sales of its existing
products and developing new products which are expected to grow in the near future. The Company has been able to expand its stable base of business in the speciality chemicals segment and has extended its reach into the international chloroformates market. **The Company is also working on developing technologies for the isocynates market.I would like to add a few more questions:
-> The company reported 17-18% PAT margin in Q4.How are the margins so high? What kind of products are helping this? What can be the addressable market size of these products?
-> The R&D expenses surged 67% in Q4(though only 20% for FY15) Are there any new products on the anvil? Is it contract based? What kind of margins can we expect from them?
-> The company has reported a strong Sales growth for full year.However,the Balance Sheet shows 21.52 crore as receivables.This is equal to 3 months or a full quarter for Paushak. Why is this so high?(same trend in FY13 & FY14 too)
-> Where does the company see itself in the long term(say,4-5 years down the line) Does the company look at any specific rate of return,before expanding/allocating capital?
-> Inspite of being debt free,the payout for FY15 was very low.Any specific reasons,for conserving cash?
Iâll add your questions to the list when I am free. Meanwhile, we need to find someone from Vadodara area to attend AGM
From the notes hereabove, I understand that current capacity of about 3000 tons / annum (Atul + Paushak) can be expanded to 10,000 tons assuming Atul also gets permission.
Import of phosgene is not possible, and I assume the same will be true for export.
It will be interesting to note how much total Indian Market demand there can be for phosgene, once the new capacities come online.
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I can attend it. Have a few more questions too. can you find a way to contact me please? aniket@valuequest.in
Sure Anuj. Iâll mail you soon. Weâll compile all the questions first and then weâll discuss further
Aniket,
from your post I understand that your belief is that Paushak sells phosgene. This is not the case. They are in the business of phosgene derivatives actually
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My bad - beg your pardon.
The fundamental question stays the same - with 3x capacity installation for phosgene derivatives, what will be the market demand / how long will it take to get decent capacity utilisation.
As per the AR,they are working on the isocyanate market which is lucrative as per the below link.
http://www.marketsandmarkets.com/Market-Reports/isocyanate-market-174077042.html
Aniket,
Even after repeated emails, there is no communication from the company. Thatâs why we need to take this to the AGM.
We already have one boarder who is attending the AGM. So letâs compile all our questions, and make the management answer all our questions.
Cheers @NikhilJain
I am traveling through this month, however am willing to try and approach Atul - their office is geographically close by. In case I succeed in getting an appointment with relevant personnel - I will inform you - and you can send me a list of queries for Atul with a point of view of verifying market outlook for Phosgene derivatives and / or any other competing products.
I would like to add 2 more questionsâŚplease validate and correct if required
1.trade receivables is 72649485 as on 31st March 2015.why is it too high compare with 31st March 2014.
2.exports have been increased by 45%.who are the foreign clients.Whatâs the demand for isocyanate in Asia Pacific?
This company has some serious corporate governance issues. Although the performance and other indicators are amazing. This can and should trade above 25x PE but it wont unless the promoters come on TV and outlay their plans openly.
Someone from GujaratâŚplease visit them at the AGM and ask these tough questions openly. Demand answers. We own the company.
Main pointâŚtell them to hire an IR agency if they cannot update data themselves!!
Hi I m from ahmedabad I can attend agm
Ok, so we have @anujpansari & @mukesh ready to attend the AGM. @NikhilJain letâs get our question complied and try to request/find few more friends to attend the AGM.
What can we do if management try not answer our questions at AGM?