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We are glad to inform you that Camlin Fine Sciences today has made its life time high of Rs. 129 and is currently trading at Rs. 126, up by 13% on NSE. Recently, we released article on Camlin Fine Sciences - Our 18-Bagger Stock and informed our members to continue holding this stock in their portfolio considering strong YoY sales and profitability growth. As on date, Camlin Fine Chemicals is giving whopping 1975% returns and turns to be a 20-Bagger stock today for our Hidden Gems members who invested in stock almost 4 years back.
Our equity analysts published Hidden Gem - March 2011 research report on Camlin Fine Chemicals (BSE Code: 532834) and shared it with all Hidden Gems members. Research report was published almost 4 years back on 27th Mar'11 and Buy was recommended on Camlin Fine Chemicals Ltd at price of Rs. 6.05 (adjusted stock split price, actual recommend price was Rs. 60.50). It gives us immense pleasure to share that Camlin Fine Chemicals turns to be a 20-Bagger stock for our Hidden Gems members giving whopping returns of 1975% since March 2011.
Today, major indices are down by almost 2% as Greek crisis deepens, however Camlin Fine Sciences is firing on all cylinders. Stock has gained more than 20% in last 2 trading sessions and made all time high of Rs. 129 today, currently stock is trading at Rs. 126, up by 13% on NSE. Company has declared its march quarter results on 13th May'15, net profit of Camlin Fine Sciences rose 147.65% to Rs 8.42 crore in the quarter ended March 2015 as against Rs 3.40 crore during the previous quarter ended March 2014. Sales rose 21.63% to Rs 134.52 crore in the quarter ended March 2015 as against Rs 110.60 crore during the previous quarter ended March 2014.
We are glad to inform you that Camlin Fine Sciences today has made its life time high of Rs. 129 and is currently trading at Rs. 126, up by 13% on NSE. Recently, we released article on Camlin Fine Sciences - Our 18-Bagger Stock and informed our members to continue holding this stock in their portfolio considering strong YoY sales and profitability growth. As on date, Camlin Fine Chemicals is giving whopping 1975% returns and turns to be a 20-Bagger stock today for our Hidden Gems members who invested in stock almost 4 years back.
Our equity analysts published Hidden Gem - March 2011 research report on Camlin Fine Chemicals (BSE Code: 532834) and shared it with all Hidden Gems members. Research report was published almost 4 years back on 27th Mar'11 and Buy was recommended on Camlin Fine Chemicals Ltd at price of Rs. 6.05 (adjusted stock split price, actual recommend price was Rs. 60.50). It gives us immense pleasure to share that Camlin Fine Chemicals turns to be a 20-Bagger stock for our Hidden Gems members giving whopping returns of 1975% since March 2011.
Today, major indices are down by almost 2% as Greek crisis deepens, however Camlin Fine Sciences is firing on all cylinders. Stock has gained more than 20% in last 2 trading sessions and made all time high of Rs. 129 today, currently stock is trading at Rs. 126, up by 13% on NSE. Company has declared its march quarter results on 13th May'15, net profit of Camlin Fine Sciences rose 147.65% to Rs 8.42 crore in the quarter ended March 2015 as against Rs 3.40 crore during the previous quarter ended March 2014. Sales rose 21.63% to Rs 134.52 crore in the quarter ended March 2015 as against Rs 110.60 crore during the previous quarter ended March 2014.
For the full year,net profit rose 36.11% to Rs 25.82 crore in the year ended March 2015 as against Rs 18.97 crore during the previous year ended March 2014. Sales rose 14.35% to Rs 427.94 crore in the year ended March 2015 as against Rs 374.25 crore during the previous year ended March 2014. Overall good set of numbers and we suggest our members to hold it.
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more time and need to hold for longer period.
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Below is the summary of Camlin Fine Sciences Ltd published in
our Hidden Gem research report - Mar'11.
1. Company
Background
Camlin Fine
Chemicals Ltd is one of the India
The company
has a strong research and development which is focused on bringing in continual
improvements on process and products, backward integration and developing
innovative products. The research and development is equipped with
comprehensive and updated instrumentation for conducting quality analysis,
stability studies. The research and development also is equipped to conduct
application studies on stability index of edible oils and Bio-diesel. Camlin
Fine Chemicals Ltd was originally incorporated on November 30, 1993 as a
private limited company with the name of Camlicon Consultants Pvt Ltd. In April
2006, the main object of the company was altered to enable the company to
pursue business in Fine Chemicals.
They
launched a new product namely, 'Sucralose' which is a synthetic sweetener with
large demand and attractive price. In June 1, 2006, the name of the company was
changed from Camlicon Consultants Pvt Ltd to Camlin Fine Chemicals Pvt Ltd. As
per the scheme of arrangement, the fine chemicals division of Camlin Ltd was
de-merged and transferred to the company with effect from July 01, 2006.
In August
11, 2006, the company was converted into public limited company and the name
was changed to Camlin Fine Chemicals Pvt Ltd. The company entered into a joint
venture with Viachem LLC USA on 51:49 basis and set up a company namely,
Dulcette Technologies LLC for marketing Sucralose, Aspartame and Acesulfame-K
and their blends in USA, Canada and Mexico. In March 30, 2007, the equity
shares of the company were listed on the Bombay Stock Exchange (BSE). During
the year 2007-08, the company increased the production capacity of Chemical
& Chemical Products from 1,636 Ltrs/Kgs to 2,476 Ltrs/Kgs.
The company
acquired the control of Sangam Laboratories Ltd by acquiring 60% of the paid up
equity share capital of the company. They invested Rs. 5 lakh for controlling
interest in the Equity Share Capital of Chemolutions Chemicals Ltd. In February
2008, the company entered into a joint venture agreement with Advanced
Aerospace Technologies Inc., USA USA
Camlin the corporate group was established in 1931 and is a pioneer in art & stationery material in
Products
Company
range of products includes
A] FOOD INGREDIENTS
i)
Antox TBHQ (HACCP Certified) FCC V / FAO / WHO (Tertiary Butyl
Hydroquinone)
ii)
Antox BHA (HACCP Certified) FCC V / FAO / WHO / EEC ( Butyl Hydroxy
Anisole)
B} SWEETENER
i)
Sucralose FCC V
C} ACTIVE PHARMACEUTICAL INGREDIENTS
i)
Miconazole Nitrate B.P. / USP
ii)
Clotrimazole B.P. / USP
iii)
Amlodipine Besilate E.P
iv)
Amlodipine Salts
v)
Advance intermediate of Amlodipine
vi)
Intermediate of Miconazole Nitrate
Research
& Development
Camlin Fine
Chemicals Ltd has a strong
research and development which is focused on bringing in continual improvements
on process and products, backward integration and developing innovative
products.
The research and development is equipped with comprehensive and updated instrumentation for conducting quality analysis, stability studies. It is equipped to conduct application studies on stability index of edible oils and Biodiesel.
The kilo lab facility is installed in the laboratory to bridge the gap between laboratory and pilot plant. The pilot plant at Tarapur is designed for scale up and development of new products and processes, as well as commercial manufacture to support small volume requirement of customers.
The
R& D specializes in synthesis of basic molecules for drug development,
synthesis of high quality laboratory chemicals, synthesis of drug metabolites.
2. Recent
Developments (as on 27th
Mar'11)
i) Camlin Fine Chemical Ltd closes deal for acquiring Borregaard – March 09, 2011.
Camlin Fine Chemicals Ltd has closed the deal on March 09, 2011 for acquiringBorregaard , Italy
Borregaard, Italy S.p.A. is one of the five global producers of Hydroquinone, which is the key raw material for the Company's major product, due to the this acquisition the Company shall have assured & steady supply of key raw material which at times remains in short supply in the global market.
ii) Camlin Fine Chemical’s board approves to form a subsidiary company in UAE – November 22, 2010
The board of Camlin Fine Chemicals in its meeting on 22 November 2010 has approved proposal for acquisition of an Italian company manufacturing fine chemicals through its wholly owned subsidiary to be set up inMauritius Middle
East
iii) Camlin Fine Chemical’s board approves scheme of merger - October 11, 2010
The board of Camlin Fine Chemicals in its meeting on 11 October 2010 has approved the merger of Sangam Laboratories, a wholly owned subsidiary with the company subject to all necessary statutory approvals
i) Camlin Fine Chemical Ltd closes deal for acquiring Borregaard – March 09, 2011.
Camlin Fine Chemicals Ltd has closed the deal on March 09, 2011 for acquiring
Borregaard, Italy S.p.A. is one of the five global producers of Hydroquinone, which is the key raw material for the Company's major product, due to the this acquisition the Company shall have assured & steady supply of key raw material which at times remains in short supply in the global market.
ii) Camlin Fine Chemical’s board approves to form a subsidiary company in UAE – November 22, 2010
The board of Camlin Fine Chemicals in its meeting on 22 November 2010 has approved proposal for acquisition of an Italian company manufacturing fine chemicals through its wholly owned subsidiary to be set up in
iii) Camlin Fine Chemical’s board approves scheme of merger - October 11, 2010
The board of Camlin Fine Chemicals in its meeting on 11 October 2010 has approved the merger of Sangam Laboratories, a wholly owned subsidiary with the company subject to all necessary statutory approvals
3. Key
Concerns / Risks (as on 27th Mar'11)
The
performance and profitability of our products depend on the petroleum prices as
they directly affect the overall costs and realizations, considering the
current petroleum pricing fluctuations which have only seen an upward movement.
Competition
from China
Any economic
downturn / recession or unforeseen events like terrorist attacks, floods can
dampen sales.
4. Saral
Gyan Recommendation
i) Camlin
Fine Chemicals has steadily increased its sales and market share in
previous years and its turnover improved from Rs. 470 million in 2006-2007 to
Rs. 1250 million in 2009-2010. Bottom line improved from a loss of Rs. 20
million to a profit of Rs. 43 million in this period.
ii)
Currently, Camlin Fine Chemicals is trading with a P/E multiple of 9. The
parent company, Camlin ltd with FV Rs. 1 is trading with a P/E multiple
of 24 which is positive for Camlin Fine Chemicals ltd.
iii)
Recently acquired subsidiary of Borregaard will help Camlin Fine Chemicals in
realizing better operating and profit margins in coming quarters. This
acquisition will ensure the easy availability of raw material Hydroquinone
manufactured by Borregaard for Camlin Fine Chemicals ltd.
iv) Company
has introduced new products and continuously strengthening its marketing
activities throughout Europe and USA
v) At
current market price of Rs 60.50, dividend yield works out to be 2.21%. On
equity of Rs. 93.03 million the estimated annualized EPS works out to Rs. 15
and the Book value per share is Rs. 45.85. At a CMP of Rs. 60.50, stock price
to book value is 1.32. Currently, the scrip is trading at 4 X FY 2011-12
estimated earnings which make it an attractive buy at current market price.
Saral Gyan
Team recommends “BUY” for Camlin Fine Chemicals Ltd. for a target price of Rs. 145 over a
period of 18-24 months.
Click
here to read/download Camlin
Fine Chemicals Ltd (Hidden
Gem - Mar 2011) research report.
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Regards,
Team - Saral Gyan.
