CHROMATIC INDIA: PENNY PICK & LIKELY MULTIBAGGER
SECTOR: DYES & PIGMENTS
Current Price: 3.10
ALL TIME HIGH/LOW: 156.90/2.65
Face value: 10
Book value: 48.44(CONSOLIDATED)
Chromatic India Limited which is engaged in manufacturing of chemical and chemical products. The Company is a manufacturer and supplier of chemical dyes, dye intermediates and basic chemicals. The Company's product range caters to textiles industries. The Company provides a range of reactive dyestuff based on vinyl sulfone and cyanuric chloride, which combines with cotton, viscose, polynosic and cellulosic fabrics. The Company's double anchor products include Chromazol Red BF-3BN, Chromazol Red Brown BF-BR, Chromazol Navy Blue BF-2BN, Chromazol Navy Blue BF-BN, Chromazol Blue BF-BR 150% and Chromazol Black HF-BR, among others. The Company's vinyl sulfone based products include Chromazol Yellow 160, Chromazol G.Yellow GRL, Chromazol Brill Orange 3R, Chromazol Red LRV, Chromazol Brill Red 5B, Chromazol Rubine GR, Chromazol Bordeaux B, Chromazol Violet 5R, Chromazol T. Blue G 133%, Chromazol Navy Blue GG, Chromazol Black B and Chromazol Black B-A.
Financials Details:
Equity Cap: 71.05 crores
Reserves: 273.09 crores(Consolidated)
BONUS TRACK RECORD: 5:2 (IN YEAR 2010)
Loans: Secured loans: 4.33 crores
Unsecured loans: 2.34 crores
Total Assets: 350.81 crores
Yearly Net Sales: 40.74 crores(consolidated)
Yearly Net Profit: 2 lakh(consolidated)
Promoter Holding is 31.40% without any pledge shares, Cheetah Multitrade Pvt Ltd is the only name is promoter holding which owns 31.40% stake & also bought 10.52 lakh qty of chromatic at 4.58 in may 2013 as per bulk deals data.
Top Public Shareholding: Clareville Capital Opportunities fund holds 8.36% & Multiplex Capital holds 1.3% stake and multiplex capital also bought 4.30 lakh qty of chromatic at 4.17 in year 2014 as per bulk deals data. Recently LTSInvestments Fund Ltd bought 10 lakh qty of chromatic at 2.75 On 14th Dec 2015 as per bulk deals data.
Chromatic India invested 225 crores in chromatic international FZE for overseas operations & its yet to commence any business and we all are waiting for update regarding this chromatic international FZE.
So, based on all above information I believe that there is great margin of safety plus my simple logic says if promoters & other top public holder like multiplex capital have bought chromatic shares at an avg rate of 4 then we as an investors have an opportunity to buy along with them for long term investment as risk-reward ratio is favourable with very minimal or no downside risk & high upside potential. I like to add one more point that if any positive news related to improvement in topline(net sales) & bottomline(net profit) will act as a positive trigger for chromatic india share price & it may give multibagger returns to long term investors.
Disclaimer : The stock picks are purely a view point of individual and there is no guarantee on the returns. Hence all the visitors are requested to apply their prudence and consult their financial adviser before acting on any of the recommendations by this any of its mode. I do not take responsibility of any losses incurred (if any) by acting on the recommendations.
SECTOR: DYES & PIGMENTS
Current Price: 3.10
ALL TIME HIGH/LOW: 156.90/2.65
Face value: 10
Book value: 48.44(CONSOLIDATED)
Chromatic India Limited which is engaged in manufacturing of chemical and chemical products. The Company is a manufacturer and supplier of chemical dyes, dye intermediates and basic chemicals. The Company's product range caters to textiles industries. The Company provides a range of reactive dyestuff based on vinyl sulfone and cyanuric chloride, which combines with cotton, viscose, polynosic and cellulosic fabrics. The Company's double anchor products include Chromazol Red BF-3BN, Chromazol Red Brown BF-BR, Chromazol Navy Blue BF-2BN, Chromazol Navy Blue BF-BN, Chromazol Blue BF-BR 150% and Chromazol Black HF-BR, among others. The Company's vinyl sulfone based products include Chromazol Yellow 160, Chromazol G.Yellow GRL, Chromazol Brill Orange 3R, Chromazol Red LRV, Chromazol Brill Red 5B, Chromazol Rubine GR, Chromazol Bordeaux B, Chromazol Violet 5R, Chromazol T. Blue G 133%, Chromazol Navy Blue GG, Chromazol Black B and Chromazol Black B-A.
Financials Details:
Equity Cap: 71.05 crores
Reserves: 273.09 crores(Consolidated)
BONUS TRACK RECORD: 5:2 (IN YEAR 2010)
Loans: Secured loans: 4.33 crores
Unsecured loans: 2.34 crores
Total Assets: 350.81 crores
Yearly Net Sales: 40.74 crores(consolidated)
Yearly Net Profit: 2 lakh(consolidated)
Promoter Holding is 31.40% without any pledge shares, Cheetah Multitrade Pvt Ltd is the only name is promoter holding which owns 31.40% stake & also bought 10.52 lakh qty of chromatic at 4.58 in may 2013 as per bulk deals data.
Top Public Shareholding: Clareville Capital Opportunities fund holds 8.36% & Multiplex Capital holds 1.3% stake and multiplex capital also bought 4.30 lakh qty of chromatic at 4.17 in year 2014 as per bulk deals data. Recently LTSInvestments Fund Ltd bought 10 lakh qty of chromatic at 2.75 On 14th Dec 2015 as per bulk deals data.
Chromatic India invested 225 crores in chromatic international FZE for overseas operations & its yet to commence any business and we all are waiting for update regarding this chromatic international FZE.
So, based on all above information I believe that there is great margin of safety plus my simple logic says if promoters & other top public holder like multiplex capital have bought chromatic shares at an avg rate of 4 then we as an investors have an opportunity to buy along with them for long term investment as risk-reward ratio is favourable with very minimal or no downside risk & high upside potential. I like to add one more point that if any positive news related to improvement in topline(net sales) & bottomline(net profit) will act as a positive trigger for chromatic india share price & it may give multibagger returns to long term investors.
Disclaimer : The stock picks are purely a view point of individual and there is no guarantee on the returns. Hence all the visitors are requested to apply their prudence and consult their financial adviser before acting on any of the recommendations by this any of its mode. I do not take responsibility of any losses incurred (if any) by acting on the recommendations.
Trade closed: target reached:
CALL CLOSED AS AFTER HITTING LEVEL OF 6 IN APRIL 2016 ITS TREND REVERSED.
ONE CAN READ BELOW GIVEN REPLY AND GET MY UPDATED VIEW AND REASONS WHY THIS STOCK PICK IDEA IS CLOSED. CHANGE IS CONSTENT AND I LIKE TO BE WITH ANY STOCK TILL ITS FUNDAMENTALS + TECHNICALS ARE INTACT.
ONE CAN READ BELOW GIVEN REPLY AND GET MY UPDATED VIEW AND REASONS WHY THIS STOCK PICK IDEA IS CLOSED. CHANGE IS CONSTENT AND I LIKE TO BE WITH ANY STOCK TILL ITS FUNDAMENTALS + TECHNICALS ARE INTACT.