Price Band: Rs 125 to Rs 150
Issue Size: Rs 46 - 56 crore
Issue Opens: March 25, 2008
Issue Closes: April 2, 2008
Business
Ahmedabad based dyes manufacturer is in the business of manufacturing and marketing of reactive dyes and dye intermediates with production capacity of 10,800MTPA.
Financials
FY2002-2003 to FY2006-2007
Revenue CAGR 11%
Profit CAGR of 25%
FY2006-2007
Revenue: Rs 140 crore
Profit: Rs 8.63 crore
Objectives
Backward integration project which will produce sulphonic acid, oleum and chlorosulphonic acids
Setting up of a co-generation plant of 4 MW
Valuation
The stock on offer is valued at 10.53 to 12.64 times its annualized earning for first half of FY2007-2008 on fully diluted equity.
Our call
JV with Zhejiang Lonsen for setting up a reactive dyes manufacturing facility having initial capacity of 20,000 MTPA in India
Margins expansion is attributed to better pricing of products and introduction of value added products
Looking at valuations and growth opportunities available in other sectors and opportunities in this sectorlike Bodal Chemicals puts this initial public offering in the list of AVOID
2 comments:
Is interworld digital a good buy, it has posted 300% profit rise for 2007 sept
NO CLUE ..
UMCAPITALINDIA
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