- Almost debt-free company β
- Reversal seen on charts
- MicroCap - MCap < 500Cr and topline of 400Cr
- Increased promoter holding
Let's analyse
πΎππππ½πππΏ πΎπππππΎπΌππ πππΏ.π
CMP: 257
[A brief + chart attached] π§΅π§΅
#StocksToBuy #investing #Finance #chembond
- Reversal seen on charts
- MicroCap - MCap < 500Cr and topline of 400Cr
- Increased promoter holding
Let's analyse
πΎππππ½πππΏ πΎπππππΎπΌππ πππΏ.π
CMP: 257
[A brief + chart attached] π§΅π§΅
#StocksToBuy #investing #Finance #chembond
We are going to analyze: ππ»
- COMPANY OVERVIEW
- BUSINESS SEGMENTS
- MANUFACTURING CAPABILITIES
- STRENGTHS
- WEAKNESSES
- CHART ANALYSIS
- SHAREHOLDING PATTERN
- BRIEF FINANCIALS
- COMPANY OVERVIEW
- BUSINESS SEGMENTS
- MANUFACTURING CAPABILITIES
- STRENGTHS
- WEAKNESSES
- CHART ANALYSIS
- SHAREHOLDING PATTERN
- BRIEF FINANCIALS
- COMPANY OVERVIEW:
Chembond manufactures speciality chemicals and provides a range of products for diverse industrial applications.
It offers metal-treatment chemicals, water-treatment chemicals, and industrial enzymes through its subsidiaries and joint ventures (JVs).
Chembond manufactures speciality chemicals and provides a range of products for diverse industrial applications.
It offers metal-treatment chemicals, water-treatment chemicals, and industrial enzymes through its subsidiaries and joint ventures (JVs).
The company also manufactures chemicals for the construction and infrastructure sectors, and high-performance coatings for structural protection from corrosion, for floors and walls in clean rooms, and for shop floors and building exteriors. β
The company diversified into equipment-based solutions for water treatment. Additionally, it trades in building construction chemicals.
Diverse business we see! π―
MANAGEMENT:
Mr. Sameer Shah: Chairman & MD
Diverse business we see! π―
MANAGEMENT:
Mr. Sameer Shah: Chairman & MD
- BUSINESS SEGMENTS:
* WATER TREATMENT:
Company offers speciality chemicals, systems and services for Total Water Management and water re-use across the industrial and C&I spectrum in the country and in limited international geographies. π§
* WATER TREATMENT:
Company offers speciality chemicals, systems and services for Total Water Management and water re-use across the industrial and C&I spectrum in the country and in limited international geographies. π§
* CONSTRUCTION CHEMICALS:
CO offers wide range of products for applications in concrete modification, waterproofing, repair and rehabilitation of structures, etc.
Its construction chemicals find application in roads & bridges, airports & metro transit, infrastructure & others.
CO offers wide range of products for applications in concrete modification, waterproofing, repair and rehabilitation of structures, etc.
Its construction chemicals find application in roads & bridges, airports & metro transit, infrastructure & others.
* BIOTECH:
The company manufactures & supplies individual and complex enzymes primarily for animal health and nutrition industries. π
The company manufactures & supplies individual and complex enzymes primarily for animal health and nutrition industries. π
*INDUSTRIAL HYGIENE:
CO has a Joint Venture with Calvatis GmbH, Germany & offers industrial hygiene and cleaning solutions to the dairy, food processing, beverage & brewing inds.
CO continues to make inroads in these segments & is augmenting its capabilities continuously. β»
CO has a Joint Venture with Calvatis GmbH, Germany & offers industrial hygiene and cleaning solutions to the dairy, food processing, beverage & brewing inds.
CO continues to make inroads in these segments & is augmenting its capabilities continuously. β»
*POLYMERS:
Chembond Polymers supplies a wide range of specialty polymer products used in industry and everyday life. β
Chembond Polymers supplies a wide range of specialty polymer products used in industry and everyday life. β
- MANUFACTURING CAPABILITIES: π
Manufacturing & blending plants are in Tarapur (MH), Baddi (HP), Chennai (Tamil Nadu), and Dudhwada (GJ).
Warehouses and branch offices are in Ahmedabad (Gujarat), New Delhi, Faridabad (Haryana), and Kolkata (West Bengal).
Manufacturing & blending plants are in Tarapur (MH), Baddi (HP), Chennai (Tamil Nadu), and Dudhwada (GJ).
Warehouses and branch offices are in Ahmedabad (Gujarat), New Delhi, Faridabad (Haryana), and Kolkata (West Bengal).
- STRENGTHS:
The group enjoys a leadership position in India in the water treatment chemicals segment.
High brand visibility of primary products has enabled cross-selling of other chemicals such as industrial coatings and construction chemicals. π―
The group enjoys a leadership position in India in the water treatment chemicals segment.
High brand visibility of primary products has enabled cross-selling of other chemicals such as industrial coatings and construction chemicals. π―
Customer base is spread across the automobiles, steel, fertilisers, refineries, petrochemicals, power plants, and infrastructure segments.
The group had lost a major revenue stream from toll manufacturing from a reputed multinational corporation in fiscal 2019. β¬
The group had lost a major revenue stream from toll manufacturing from a reputed multinational corporation in fiscal 2019. β¬
This loss in revenue was expected to be compensated by ramp-up in operations in segments such as material division, and animal health and nutrition segment. β¬
However, growth in these divisions has been lower than expected and could only partially compensate for the loss of revenue from toll operations. Scale-up in operations and improvement in profitability will remain key rating sensitivity factors. β
- WEAKNESSES: β
Competition is intense in the surface and water-treatment chemical sector due to moderate capital requirement and easy availability of raw materials.
Customer profile is strong and includes players such as RELIANCE, IOC, GAIL & Haldia Petrochemicals Ltd.
Competition is intense in the surface and water-treatment chemical sector due to moderate capital requirement and easy availability of raw materials.
Customer profile is strong and includes players such as RELIANCE, IOC, GAIL & Haldia Petrochemicals Ltd.
However, the group is not the only supplier to these clients, which restricts its bargaining power. β
Additionally, any vendor rationalization by customers or loss of price competitiveness because of technological disadvantages may constrain revenue.
Additionally, any vendor rationalization by customers or loss of price competitiveness because of technological disadvantages may constrain revenue.
Recently acquired businesses in automotive segment also has significant competition, thereby constraining growth.
However, diverse nature of customer profile & spread across industries & geographies minimize adversities such as loss of customers in any segment or industry. π―
However, diverse nature of customer profile & spread across industries & geographies minimize adversities such as loss of customers in any segment or industry. π―
- CHART ANALYSIS
Kindly open the chart and read the points mentioned on the charts. β¬
We can see a clear reversal pattern with consolidation indicating a trend reversal in the stock.
Kindly open the chart and read the points mentioned on the charts. β¬
We can see a clear reversal pattern with consolidation indicating a trend reversal in the stock.
- SHAREHOLDING PATTERN
We can see the promoter has increased stake in the recent quarters. (not very significantly though)
We can see the promoter has increased stake in the recent quarters. (not very significantly though)
- BRIEF COMPANY FINANCIALS:
MCAP: Rs. 345 Crores.
Stock P/E is 32.3 compared to industryβs P/E 26.2.
COβs EV/EBIT ratio is 19.8
COβs OPM is 4.33%.
COβs ROE is 4.67%
ROCE is 7.08%.
Both ROE and ROCE have underperformed the competitorβs ROE and ROCE. β
MCAP: Rs. 345 Crores.
Stock P/E is 32.3 compared to industryβs P/E 26.2.
COβs EV/EBIT ratio is 19.8
COβs OPM is 4.33%.
COβs ROE is 4.67%
ROCE is 7.08%.
Both ROE and ROCE have underperformed the competitorβs ROE and ROCE. β
Leadership in it's segment, increased shareholding, valuations look fair enough, almost debt free CO + technically looking very sound -
This microcap should definitely be added in your watchlist and should be studied deeply. β
This microcap should definitely be added in your watchlist and should be studied deeply. β
And, that's a wrap.
If you liked the analysis, make sure to like and retweet the FIRST TWEET to show support and share with maximum investors! β»οΈ
Do share your views on this CO in the comments below. π©
If you liked the analysis, make sure to like and retweet the FIRST TWEET to show support and share with maximum investors! β»οΈ
Do share your views on this CO in the comments below. π©
Disclaimer: This twitter thread is for educational and knowledge sharing purposes only. We are not associated with the company in any form. This is not a buy/sell/hold recommendation of any kind. Kindly consult with your financial advisor before taking any actions.
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