Camlin Fine Sciences Research Report By ICICI-Direct

Camlin Fine Sciences (CFS) is the world’s largest manufacturer and marketer of food grade antioxidants TBHQ and BHA with ~50% and ~70-80% market share, respectively. Going ahead, CFS’ focus would be on capitalising on the industrial segment (Diphenol downstream products) with the introduction of newer products in the industrial division.

Strong performance warrants re-rating: Strong revenue, PAT CAGR of 23%, 22%, respectively, (in FY14-16E) on the back of new product launches in Diphenol downstream segment, entry into blends business (forward integration for TBHQ, BHA business) and consistent margins (12.5-12.8%) are expected to lead to a re-rating of the investment multiples in the range of 12-14x on FY16E EPS of | 9.1.

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