Here is a short write-up on Deepak Nitrite.
Financials
Market Cap: Rs. 273.42 Crores
Current Price: Rs. 260.40
Book Value: Rs. 267.78
Stock P/E: 7.20
Dividend Yield: 2.30%
Stock is Rs. 10.00 paid up
52 Week High/Low: Rs. 325.00 / Rs. 139.00
Dividend Payout Ratio: 16.54%
Debt to equity: 1.18 (high... key monitorable)
Price to book value: 0.97
EPS FY12 = 22.06
9M EPS FY13 = 27.14
Fy13 EPS (exp) = 31-32
FY14 EPS (exp) = 38-40
For the next 2 years, earnings can grow 30%. If there is a moderate PE re-rating (only possible if the mid/small cap market sentiment improves) to 9-10, the price in a year can be around 350-400.
Disclosure: I am invested in Deepak Nitrite and my views are likely to be biased.
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Established
in 1970s by Mr. C.K. Mehta
§
Market
leader in India
for Sodium Nitrite / Nitrate & Nitro Toluenes.
§
DNL is a
top 3 global supplier for products like Cumidines and Oximes
§
On par
with global players in colour intermediates business
§
Exports
are around 44% of sales (FY12) & 29% YTD (FY13)
§
Manufacturing
of hazardous chemicals is shifting from developed economies to developing
economies due to environmental hazards. India is benefiting from this
trend.
§
Diversified customer
base consisting of
some of the
largest chemical companies in
the world, including
Sygenta Global, Bayer
Crop Science, BASF, Kemira,
Lanxess, Clariant, Isochem,
Lonza, IOC, Reliance & Essar.
§
Fuel
additives & Solar Salts are expected to be significant growth drivers in
the future.
§
Fuel
additives grew by 56% in Fy12. It was 98 cr in FY12. In 9mFY13, it is already 130
cr with Q3 35cr. Company is expecting 150-160 cr from this segment this year.
|
Segments
|
Organic Intermediates
|
Inorganic Intermediates
|
Fine & Specialty Chemicals
|
|
Product Categories
|
Nitro Toluenes, Fuel
Additives, Nitro Chloro Benzene, Xylidines, Cumidines
|
Sodium Nitrite,
Sodium Nitrate
|
DASDA, Oximes, Fuel
Additives, Specialty chemicals
|
|
Applications
|
Agro-chemicals,
Pigments, Dyestuffs,
Fuel
Pharmaceuticals
|
Pigments, Dyes,,
Rubber
Chemicals,
Explosives,
Food Colour, Electro
Plating Glass
|
Paper, Detergent,
Textiles,
Agrochemicals, Fuel Additives, Pharmaceuticals
|
|
% of revenue
|
57%
|
16%
|
27%
|
Financials
Market Cap: Rs. 273.42 Crores
Current Price: Rs. 260.40
Book Value: Rs. 267.78
Stock P/E: 7.20
Dividend Yield: 2.30%
Stock is Rs. 10.00 paid up
52 Week High/Low: Rs. 325.00 / Rs. 139.00
Dividend Payout Ratio: 16.54%
Debt to equity: 1.18 (high... key monitorable)
Price to book value: 0.97
EPS FY12 = 22.06
9M EPS FY13 = 27.14
Fy13 EPS (exp) = 31-32
FY14 EPS (exp) = 38-40
For the next 2 years, earnings can grow 30%. If there is a moderate PE re-rating (only possible if the mid/small cap market sentiment improves) to 9-10, the price in a year can be around 350-400.
Disclosure: I am invested in Deepak Nitrite and my views are likely to be biased.
