AKSHAR CHEM (bse)

CMP--127.20


Current year EPS at 30.88----3 years compounded sales and profit growth are 20 % and 50% respectively.ROCE --3year average at 45% and previous year 2014 at 73%---D/E Ratio at 0.27%---35% dividend delared for 2015....I think one may consider the scrip...

 

AksharChem is a global company dedicated in the production of dyesand intermediates. The Company excels as one of the leading manufacturer and exporters of Vinyl Sulphone.

Vinyl Sulphone is used as raw material for reactive dyes, which is having application in color pigments, paints, rubber, textiles, plastics and leathers. They react chemically under suitable conditions with Cellulose based materials yielding brilliant shades with good fastness properties.

AksharChem India Ltd was formed and incorporated in the State of Gujarat on 4th July, 1989 under name Audichem (India) Private Limited. Thereafter, on 25th February, 1994, the Company was converted into a public limited company and subsequently name changed to Audichem (India) Limited. Further, on 21st March, 2003 name was changed to AksharChem (India) Limited.

Established in 1989 on a small scale in the chemical belt of Gujarat at 600 MT per annum capacity, the quality of the product has created tremendous demand ultimately leading to continuous expansion in production capacities. Today, they have grown to the capacity of manufacturing 6000 MT per annum.
In recognition of its performance / achievements, the company has been conferred the prestigious "International Gold Star' award for `Excellence in Corporate Image and Quality' by Business Initiatives Directions in Spain. It also has received many export awards from Government of India, Government of Gujarat, Gujarat Chambers of Commerce and Industry, Gujarat Dye - stuff Manufactures Association, Federation of Indian Export Organization, Chemexcil and so on.

 

Equity cap has gone up from 4.95cr in 2014 to 7.31cr in 2015 and hence the EPS which was taken as 30 should be read as 21.88 and the PE ratio as 6

 

Akshar 5% UP at 120

 

Akshar made 126 t'day

 

What significant moats does this company has with respect to it's competitors. Looking purely at the numbers, the script does look good at the price it is trading right now but it has had a free fall from 250-300 levels to around 110 which is nearby its 52 week low. Another thing is looking at the script in moneycontrol, the industry p/e is around 5.45 while the stock is currently trading at almost those valuations at par with industry. Since this is not even a small cap, at around market cap of around 88cr this could be termed as micro cap, not much information is known about the company other than it's website.

If any user here who is familiar with the industry it operates and can provide us an insight on the company or on the industry as a whole it would be more helpful to make a more knowledgeable call on the company.

 

Akshar Chem at 159

 

Very good performance and timing. Sir, how you do it. Is it technical or fundamental?

 

This is actually one of the best in dye intermediate sector with amalgamation of the cpc green divisions from asahi songawan this stock was waiting to be related with prices of dye intermediate picking and reduction in raw material cost this will be a good long term bet Volumes has picked up so can expect a big move to 200/220

 

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Thanks .. Srouta ji.... Though I prefer technicals most..This was a pure fundamental one.

 

Good stock buy in a correction according to your risk apatite ...