#Chemcon Speciality Chemicals Ltd.
A Techno-Funda ๐งตon Chemcon Speciality Chemicals Ltd.(CSCL)
CMP - 290
Technical View ๐
A Techno-Funda ๐งตon Chemcon Speciality Chemicals Ltd.(CSCL)
CMP - 290
Technical View ๐
About :
Co. is manufacturer of speciality chemicals. They are:
๐Only Manufacturer of HMDS in India & 3rd largest manufacturer Worldwide
๐Only Manufacturer of Zinc Bromide in India
๐Largest Manufacturer of CMIC Worldwide
๐Largest Manufacturer of Calcium Bromide in India
Co. is manufacturer of speciality chemicals. They are:
๐Only Manufacturer of HMDS in India & 3rd largest manufacturer Worldwide
๐Only Manufacturer of Zinc Bromide in India
๐Largest Manufacturer of CMIC Worldwide
๐Largest Manufacturer of Calcium Bromide in India
Key Business Segments: ๐
HMDS Applications in๐
๐Pharmaceuticals as a silylating agent in drugs manufacturing
๐Semiconductor: Surface treatment agent of diatomite, white carbon black, titanium & blond additives of photoresist
๐Organic Synthesis: Precursor to many bases common in organic synthesis
๐Pharmaceuticals as a silylating agent in drugs manufacturing
๐Semiconductor: Surface treatment agent of diatomite, white carbon black, titanium & blond additives of photoresist
๐Organic Synthesis: Precursor to many bases common in organic synthesis
CMIC Applications in๐
๐mainly used in pharmaceutical industry as a key intermediate for anti-AIDS, anti-hepatitis B drug Tenofovir
๐used in synthesis of other antiviral drugs
๐mainly used in pharmaceutical industry as a key intermediate for anti-AIDS, anti-hepatitis B drug Tenofovir
๐used in synthesis of other antiviral drugs
Oilwell Completion Chemicals
๐Calcium Bromide- used as a completion & work-over fluid to control wellbore pressures in upstream oil & gas operations
๐Zinc Bromide- used to prepare non-damaging liquids
๐Sodium Bromide used to form clear workaround & drilling fluids.
๐Calcium Bromide- used as a completion & work-over fluid to control wellbore pressures in upstream oil & gas operations
๐Zinc Bromide- used to prepare non-damaging liquids
๐Sodium Bromide used to form clear workaround & drilling fluids.
REVENUE CONTRIBUTION:
HMDS - 51% revenue sare in FY22
CMIC โ 26% revenue share in FY22
Bromides โ 23% revenue share in FY22
Majorly Manufacturing Exports contributes to 37% from
USA, UAE
Japan, Italy
Spain, Russia
China, Malaysia
Germany, Thailand
& South Korea
HMDS - 51% revenue sare in FY22
CMIC โ 26% revenue share in FY22
Bromides โ 23% revenue share in FY22
Majorly Manufacturing Exports contributes to 37% from
USA, UAE
Japan, Italy
Spain, Russia
China, Malaysia
Germany, Thailand
& South Korea
KEY CLIENTELE :
๐Long-Term healthy Relationships with Clients.
๐Long-Term healthy Relationships with Clients.
CHEMCON'S MARKET SHARE IN GLOBAL MARKET๐
Manufacturing Units:๐
๐Co announced successful commencement of P9 facility by adding 2400 MTPA of Bromo Benzene product
๐Co. guides to commence P-10 facility from FY24 which is currently under construction stage
๐Co. acquired adjacent land which is for further expansion
๐Co announced successful commencement of P9 facility by adding 2400 MTPA of Bromo Benzene product
๐Co. guides to commence P-10 facility from FY24 which is currently under construction stage
๐Co. acquired adjacent land which is for further expansion
UPDATE on CAPEX ๐
FIANCIAL PARAMETERS :
Stock P/E - 15.6
Promotors holding - 74.5%
ROE- 16.3%
ROCE - 20.9%
Debt free Co.
Strong Uptrend in Profit after Tax YoY
Stock P/E - 15.6
Promotors holding - 74.5%
ROE- 16.3%
ROCE - 20.9%
Debt free Co.
Strong Uptrend in Profit after Tax YoY
KEY GROWTH DRIVERS
๐Co product portfolio is well positioned to capitalize Import Substitute theme
๐Co. is expanding its product PF by adding new products & new applications segment like Agro-Chem
๐Co is also looking to reduce dependency on Chinese RM by backward integration
๐Co product portfolio is well positioned to capitalize Import Substitute theme
๐Co. is expanding its product PF by adding new products & new applications segment like Agro-Chem
๐Co is also looking to reduce dependency on Chinese RM by backward integration
KEY RISKS :
High Customer Concentration: Almost 59% of the revenue is generated from the top 5 clients. Any Customer loss may affect significantly.
Dependency on China for procuring some of its raw materials.
High Customer Concentration: Almost 59% of the revenue is generated from the top 5 clients. Any Customer loss may affect significantly.
Dependency on China for procuring some of its raw materials.
Q2FY23 CONCALL UPDATE:
๐Co. is procuring Raw Material for CMIC i.e, Methyl Chloroformate from Paushak on regular basis
๐P10 is expected to complete in Mar'23, so that Co. can expect the product out in Q1 2024. The new unit is into import substitute for agro chemical as pharma
๐Co. is procuring Raw Material for CMIC i.e, Methyl Chloroformate from Paushak on regular basis
๐P10 is expected to complete in Mar'23, so that Co. can expect the product out in Q1 2024. The new unit is into import substitute for agro chemical as pharma
๐Co's efforts towards increasing the product basket towards Agro-Chem also to take care of the volatility affecting entire business of the Co. coz of focus only Pharma.
๐Mgmt is 100% confident that EBITDA per kg or may be gross profit per kg again moving to the normal level
๐Mgmt is 100% confident that EBITDA per kg or may be gross profit per kg again moving to the normal level
๐Mgmt expects that the Solar power plant commissioned at Dabhoi reduces the cost by Rs.50 lakhs to Rs. 60 lakhs per quarter.
๐Mgmt's view on "bromobenzene" - It had already supplied 100 tons of bromobenzene in November to China. The pricing of this product is around $5.7 to $6/kg with a margin of $1.2.
๐@ 100% capacity utilization of Bromobenzene, Co. is expected a revenue of about Rs 100 Cr.
๐@ 100% capacity utilization of Bromobenzene, Co. is expected a revenue of about Rs 100 Cr.
๐Mgmt vision of achieving a target revenue of Rs.1000 Crores in next five years.
๐Co. has almost achieved import substitution for HMDS and CMIC.
๐Mgmt is planning to discontinue the DHT & CBC products as they were not able to penetrate into the supply chain
๐Co. has almost achieved import substitution for HMDS and CMIC.
๐Mgmt is planning to discontinue the DHT & CBC products as they were not able to penetrate into the supply chain
Disc. - Technically, Holding tracking qty @ 325 with strict SL 260 WCB. Will review after Q3 results.
Thanksโบ๏ธ
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Thanksโบ๏ธ
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