Few doubts
The company doesn't seem to be having any land holding. As per BS Mar 2015, Tangible assets of about 2 cr and i can't find any freehold land.
As per their presentation, some of the projects , it is mentioned DA-Arvind land. I assume the land belongs to either Arvind ltd or another group company. But i don't understand then why the percentage ownership is 100%.

The long term and short term advances are very high.

Understand that the company intends to develop 14 m sq ft of space. And it is expected that the cost of construction will come from sales proceeds ( advance from customers ) but as of 31 mar 15 advance from customers is mentioned as only 2.75 cr ( 4 cr in mar 2014) which seems pretty low.

In order to execute the projects the company needs to sell heavily in advance and same should reflect in Balance sheet.

Also need to monitor inventories. Mar 15 it stands at abt 76 cr.

Styrolution ABS - Margin should continue in double digits barring any inventory losses - Jun-qtr Concall update

• Q1 saw Volumes growth of 15% as compared to Industry volume growth of about 13%. The company was able to gain some market share. However due to lower crude oil prices, there was a negative value growth which led -2% decline in Revenue during the qtr.

• Margins improved on back of lower crude oil prices, better product mix and inventory gain of raw materials. While it’s difficult to project on inventory side, management expects the margins should continue to be in double digit barring any inventory losses to come in due to lower crude oil prices.

• Capacity utilization rate is around 80% in specialty chemicals. The company has increased the capacity of ABS from about 80 ktpa to around 1.1 lakh tpa in Oct'14. SAN capacity remained at 1 lakh tpa which is also used for captive consumption to produce ABS. Every 100 ton of ABS 75 ton of SAN is required. To that extent company is consuming SAN and balance is sold in external market.

• In terms of market share, overall, the company has market share of about 44% in ABS in India and about 60% in SAN. In terms of sales, about 70% comes from specialty chemicals and rests are from commodity products for the company. The sales should inch up towards specialty products which have nearly double the margins that of commodity products.

• Subsidiary company Styrolution Pvt Ltd is engaged in business of producing Polystyrene. Management expects the company to do well in FY16 given poor base of past couple of years and some visible demand recovery. Company has invested around Rs 100cr in Styrolution India Pvt ltd which has turnover of around Rs 500cr in 12 months ended Dec'14.

• Globally, the Parent is a market leader in ABS and is second to none in EU and US. In Asia, there are competitors like LG. In India, there is a local competitor called Bhansali Engineering and about 20% of total demand of ABS is met through imports.

• As per the management, they are not focused on exports and their entire focus remains on India and Make in India concept. Going forward, new products and mixtures have been aimed and will be tested. These products have higher realizations and increase the overall productivity of consumers as well. Overall, for FY16, it's difficult to say the revenue growth as it depends upon crude oil prices, but management expects strong performance on profitability to continue.

Kunal, You can't compare this case with the names you mentioned unless they use that cashflow to reduce debt. After the debt reduces, the cash flow remains (and hopefully grows, if its a growing business)....Lets fast forward a bit.....Just assume, the 50cr cash is used to pay down down only. After about 3 years, what remains is a business valued at 170cr earning 50cr of cash with no debt, on a recurring basis....If future business remains debt funded, or the debt increases further - this may not hold true....Which means we need to re-analyse the business model and figure why they need so much debt (not making it a good business to be in).....
I am not saying 15% was on a lower base....15% was before the acquisition
With regards to the balance sheet, the numbers mentioned are not present on the snapshot you have provided. Please see moneycontrol.com or any other website which has separate sections for overall debt, working capital and cash....You will find the trends over there....Please include FY15 numbers too....For example debt has reduced from 180cr to 139cr

Data: Screener.in

OPM (TTM) = 7.74%

RoCE last year = 12.89%
RoCE 3 yr Avg. = 15.91%
RoCE 5 yr Avg. = 21.64%
RoCE 10 yr Avg. = 22.61%

As of today, a pedestrian OPM with a falling RoCE does not inspire confidence.

But now this company has started commanding a respectable pe ie 18 more than many other promoters ..So should we wait to get the run up somewhat exhausted ??

Disc - wanted to invest after due research

Nd also why the screener is showing roe and roce different when the company is debt free .