Its no more chloro phenol company … Two big mergers have happened its now something else and growth really surprised me.
EPS became some 3x … Crazy
if they do no growth in the second half and just repeat the performance.
Then FY19 EPS will be 110 ,i.e, stock is trading 14-15 x earnings.
Doesn’t looks like a expensive stock to me …
One merger you mean, other is due.
Yes … and so far mergers have happened in favor of shareholders. The next one is a biggest one of all …
How do you see it could pan out ?
Guys, any idea whats happening to the stock, has fallen 30% from peak of 2k, time to enter ??
https://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20190723-33
Cud it have anything to do with listing of new securities of valiant org post merger with amarjyoi chemicals? any scuttlebutt on price and volume of valiant product?
Promoter quality remains pristine as its from aarti group imho
yes , new shares allotted to Amarjyoti are now available for trading today.
Somebody from Amarjyoti cashing out looks like … they should get listed to main board.
y its not happening ?
Will take another 5 to 6 months . Valiant has one of the best promoters most ethical with superb execution from Aarti group. They know the sector like the back of their hand and take necessary corrective measures if required. Its one of the cheapest stock on chemical sector n will catch attention of biggies only after it migrates to main board.
it doesn’t matter who the promoters are, if macro changes everything changes. Best captains of the ship can’t sail during tsunami, Never forget Chemicals are not FMCG types businesses. There is a macro tail wind and best of captains can make the best use of this tail wind to sail through. So, be watchful of how tail wind is changing.
Nobody understands or know here how revenue going to be 5 years from now but on the other hand with fair degree we all can guess the revenue range of FMCG companies thats the difference.
Betting on promoters is like betting on Sachin or Kohli, yes most of the time they can make use of good batting pitch given to them but if pitch is just not good enough to bat they are helpless too.
This theory of yours SME 90% promoters is totally flawed. You should know what you own and why you own , what will make you exit.
TO each his own way of investing shud be the motto.
for me this approach of 90% bet on promoter 10% on sector high roce ,high allocation has worked well. behaviour n allocation too very imp
Anyone planning to attend valiant organics agm on 30 sep at 3 pm at Mulund mumbai ?
annual-report-2018-2019.pdf (2.7 MB)
I am invested but can’t attend
Would love to get notes if you or someone else attends
The results for 31st March 2019 include the effect of the merger with Amarjyot Chemicals (the effect of merger is included only for the second half year). The diluted EPS is around 50 for the second half year. Assuming 50x2 = 100 EPS for the full year, the PE ratio at CMP 1225 comes to more than 12. Several quality chemical stocks are available at much lower PE. This is probably a reason for the correction.
what all quality companies trading at lower PE ?
Valiant Quality -
Aarti Promoters.
ROE > 35%.
Growth Capex Not Done ( Infact is on full swing) .
No Debt in balance sheet.
EBITA Margin - 30% (They don’t deal with commodity chemicals. )
Global Supply chain - Export to Europe, Japan, U.S and China.
Let me know lower PE stocks beating above criteria, would love to buy them.
Thank you for the information. I am familiar with the stock only at a high level. I agree that the market appears to be mispricing the stock. Aarti promoters, high margins and huge expansion plans (detailed in the Annual Report) are all great points. I have a few questions though:
Sushil, as per the results ending 31st March 2019, Rs 50cr is the PAT in H1 FY19 excluding merger and Rs 71cr is the PAT in H2 FY19 including the effect of the merger.
Amarjyot merger effective 1st October 2017.
You are right. I incorrectly read the date as October 2018. My questions above, then, are wrong.
Did anyone attend the AGM? Would be great if you could share the key takeaways.
Employee cost in Valiant is extremely low. In fact it has decreased from last year. Is there any particular reason for this low employee cost in Valiant?
