Prolife Industries - Emerging chemical SME company

[Akshay_Kumar]

Prolife Industries Ltd is engaged in the business of manufacturing special/ exclusive range of intermediates for dyes, pigments, agrochemicals and others. In 2016, company came to IPO and listed in NSE Emerge.

Product Portfolio: Company’s product portfolio:

1. Dyes Intermediate:
   a. Dihydro Thio Para Toluidine Sulfonic Acid (DTPTSA): Used as paper dyes intermediate.
   b. Amino Phenoxy Propane Sulfonic Acid (SPA)
   c. Amino Methyl Phenoxy Sulfonic Acid (SPMT)
2. PYBIZS: 4-Nitrile-1-Hydroxy-8-Metoxy-3-Methyl Benzo [4,5] Imidazo [1,2 A] Pyridine-7 & Sulphonic Acid & its sodium salt
3. Basic Dyes: Basic Red51/Red 76/Brown16/Brown17/Brown99/yellow-1/Yellow57/Orange31
4. Organic Intermediates:
   a. 2-Chloro Methyl -3,4- Dimethoxy Pyridine
   b. Octahydro-4B-Methyl-9 (Methylamino)
   c. Di Amino Bisphenoxy Ethane
   d. 5-Methoxy 6- Amino Benz Imidazole

Geographical Presence: The company exports to various countries like USA, Spain Switzerland, Germany, France, Japan, Germany, Brazil

In FY20, the company earned 33% of revenues from domestic sales and the rest 67% of its revenues from its overseas business.

Manufacturing Facility: The company’s only manufacturing facility and its registered office is located in Ankleshwar, Gujarat.

Future Plans: In 2018-19, the company formulated a sound business plan for long-term growth in domestic and global markets. As per the plan, company already manufacturing new products increased its manufacturing and production by adding additional manufacturing capacities. It also started to reconstruct the additional building, plant and machinery and other allied facilities for enhancement of production facilities. It also plans to go for backward integration of these products.

Pros: Company is growing at a steady speed with increasing RoCE. Along with that at a PE of 8 it is trading cheap.

Cons:

1. Low liquidity in the stock.
2. Management not planning to move in to NSE.
3. Q2FY22 Numbers of Prolife were disappointing. Company had suffered with margin pressure in this quarter.
4. Content repetition in past Annual Reports.

References:

1. Screener
2. Annual Reports
3. Product portfolio
4. Indiamart page for the company

Disclaimer: Tracking this company. No positions in it yet.

[Malhar_Manek]

Thank you for starting this thread. I believe the promoters have multiple unlisted companies in chemicals which seem like they could potentially be conflicting with the listed entity, as well as one in film production:

Disc- no holdings

[Akshay_Kumar]

Below is the basic analysis done by me. Numbers look tremendous to me. Only negative aspect being Director’s salary is the fastest growing metric.

[Moat]

what is wrong with the stock price of this company. There is manipulation going on in my view.
Just look at the price movement, share are available in block of 3000 at diffrent price points on any given day

[Stocks_To_Win]

Dear Akshay-
Numbers are excellent.
It is in SME and generally one good or bad quarter can change the numbers drastically but Prolife industries delivering good numbers consistently on quarter and quarter.

My pros:
Along with your points, sector tailwinds will give good earnings visibility in the upcoming years.

My cons:

1. Management not planning to take measures improve the liquidity to benefit the small shareholders.
2. Management has no plan to list it in main board.

Disc: Holding

With thanks
Be and Make

[investmentmania]

It can give returns like Chemcrux. Very good company. Growing with internal accruals.

[elesbaanp]

Decent Q2 results from Prolife

[UrsRafeek]

I see there’s huge buying by promoter. Not sure whether to manipulate prices or bottom fishing.
Regarding Promoter DIN I got contradictory results. Can anyone cross check what’s wrong.

[investmentmania]

No promoter buying here. Shares got transferred from Late Mr M.S.Jolly to his son Mr Karan Jolly.