This looks like an important piece of information. Do you have any idea what happened in the last six months? Could they be asked to leave office?
Posts in category Value Pickr
Omkar Speciality Chemcials Ltd — OSCL (06-09-2015)
- Omkar had borrowings of Rs 223 crore as at 31/03/2015 on consolidated basis. Finance cost on gross basis was Rs 22.65 crore for FY2015. After capitalising Rs 8.17 crore of interest, net charge towards finance cost Rs 14.48 crore.
- Net fixed assets deployed/under deployment of 271 crore include CWIP of Rs 121 crore as the company is expanding its capacity in Chiplun and Lasa unit. However, their present level of revenues at Rs 263 crore in relation to that is small; Not sure what level of revenues is targeted by the company when commercial production is achieved.
- Iodine derivative segment, which is among major portfolio of the Company, the prices of iodine based raw material continued to fall & consequently the Company suffered on topline growth as per own admission of the management. Even though the production volumes of iodine derivatives grew by 16-17%, it didn’t result in topline growth.
- Company is working on Working capital cycle that has improved to 143 days compared to 203 in FY 2014 but remains to be seen if they can bring greater efficiency. Shorter debtor cycle in export segment might be of help.
- Though they are capitalizing interest and maintaining operating margins of 19% or so, I don’t see the ROCE meaningfully expanding from here.
I don’t closely track Omkar but as it appears from its financials & trend, a setback on business front or inability of the company to commensurately increase the revenues due to internal or external factors can adversely affect it’s operational performance, given the finance cost and other fixed costs.
In present environment when iodine prices are soft and commodities highly uncertain to call, any setback can severely test company’s resilience to financially withstand a downturn. Investors need to be cautious.
Discl – Not invested.
Orbit exports (06-09-2015)
Hi @sunilsurana, the company issued bonus shares in ratio of 1:2 in July 2012 which is the main reason for increase in company’s equity base. The company has also issued fully convertible warrants to the promoters, but the % dilution due to these warrants is very small (3-5%).
Stock Anaysis Tool (06-09-2015)
hi
I had developed this tool for my stock selection, just wanted Value Pickers members to advise,
would be looking forward to advice from experienced members
the explanations are
P= means that it has passed the test, like Amara Raja company started by Promoter.so it is P in that columnsanalysis-sheet060915.xlsx (14.1 KB)
F means it fails that test like, Kaveri seeds is F in cyclical columns as it is a company whose performance is cyclical.
The idea is more P means there are more chances of that company giving good returns in the long term.
will eagerly wait for suggestions of experienced members as I am very new to stock investing and have just started
the companies appearing are either where I have invested or I am closely monitoring
REPCO home finance – another Gruh in the making? (06-09-2015)
@whipsaw this is 6 months old news. What is the idea behind sharing it now please. Just FYI or any significance is attached to it?
Emkay taps and tools (06-09-2015)
Quoting at IPO price 60 Cr. About 10 Cr PAT for FY15.
Screener.in: The destination for Intelligent Screening & Reporting in India (06-09-2015)
hi any one knows how to get the export to excel feature now
I had customised my excel sheet and missing that for my analysis
REPCO home finance – another Gruh in the making? (06-09-2015)
HC orders issue of notices to Ministry, Chairman, Repco Bank
Omkar Speciality Chemcials Ltd — OSCL (06-09-2015)
my worry is that when a promoter pledges shares and borrows at 200-300 bps from a private financier above bank rate of interest, it’s typically a sign of drying liquidity. A fact that is corroborated further by:
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Omkar capitalizing interest (this is typically done only for ultra long gestation projects like refinery, oil drilling ). typically projects that require 4-5 years for completion
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at 13 % on Rs. 175 Cr. of debt, it’s almost Rs. 22-24 Cr. of interest payment. can this go up further and slide further is my big worry.
Look at ROIC – its about Rs. 38 Cr. ebitda at say tax rate of 30 % which is about Rs. 28 Cr. or so. which is about 13-14 % on total capital invested of Rs. 270 Cr. odd – just above cost of debt and certainly nowhere close to being above cost of equity.
Orbit exports (06-09-2015)
The company have been continuously diluting equity over years. Its almost doubled in 4 years. Does anyone see this as concerning?