Dear ValuePickrs,
This is my first post + 3 months investing experience – so may not b able to answer your queries (but will try as much as possible)
First of all humble gratitude to Prof. Sanjay Bakshi – who has taught so many students (actively or through his blog). Got interested in equity investment after reading his post on – Seven Intelligent Fanatics From India.
Shree Hari Chemicals
Listed in 1992 by ex-Birla guy (K.LRamuka – no public info about Ramuka)
Market Cap – 36cr
Cash in Hand – 35.5 cr
No debt (short term or long term)
Total Shares – 44 lakhs
Promoter Holding ~ 48% (promoters were buying from open market few months back)
Public Holding ~ 52%
get a loan of 18cr become majority share holder and get access to 35cr cash + business 
repay back your loan of 18cr with 35cr cash (net net – u will get access to 18cr + business for free 
– I am aware this is unlikely to happen – just thinking aloud)
About Product
Manufactures – H-Acid (80% contribution to revenues) – used as an intermediary product in Dye-Chem industry – commodity product – exported to multiple countries
Competition – China / Local Manufacturers
Pricing – v.competitive with China (as per mgmt – during my call 1-2 months back)
Balance Sheet
No Debt
Cash in Hand ~ 35.5cr
Account Receivable (13.75cr) ~= Account Payable (10.4cr) – if not zero / negative (Buffet’s float money) – net account receivables is v.low
P&L
growth in earnings observed in past couple of years – mainly due to China factories were closed down – pollution issue. Highly regulated industry by Pollution board. Even Shree Hari factory was closed in Mar’13 compete financial year and approx 1 month in Q2FY16. Company reported a loss in Q2FY16 – i guess mainly for 2 reasons
1. Factory was closed – hence sales dip
2. Bureaucrat expense – to get the factory operational (though I guess Pollution norms must have been met – after Mar’13 issue – just guessing)
High Margins – in spite of low cost manufacturer
High ROE – due to low equity base
High ROCE
cash rich
Disc – Invested – tracking state
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