Chembond Chemicals Ltd 310.00

Founded in 1975, Chembond Chemicals Limited has headquarters in Mumbai and focuses on the speciality chemicals segment. The company is listed on the Mumbai Stock Exchange (BSE: CHEMBOND) and has an established presence across India. 

It operates four divisions

construction chemicals, coatings, trading and biotechnology; and two joint venturesHenkel Chembond Surface Technologies Ltd. and Chembond Ashland Water Technologies Ltd. Chembond has been growing consistently over the years on the strength of its technology and service capabilities and counts over 700 employees

Construction Chemicals Division:

The Construction Chemicals Division of Chembond offers a wide range of products for applications in concrete modification, waterproofing and repair and rehabilitation of structures. It also offers a host of other product solutions like Sealants, Concrete Admixtures, Tile fixing adhesives, Tile Joint fillers and Engineering Grouts aimed at the construction and civil engineering industries. The KFix brand of construction chemicals cater to the distribution channel and applicator segment with small pack sizes, while the infrastructure projects are catered to in bulk pack size

Chembond Coatings, a division of Chembond has been in the business of high performance anti-corrosive industrial coatings and industrial floorings since 1994. We design systems especially to suit tropical and high demanding industrial environment such as marine environments, process industries, steel plants, power plants, pharma, electronics etc. We offer the best solutions in corrosion protection and thereby preserve the value of our client’s investment.

Biotech

Technology based on biology and nature will be one of the most exciting and high growth areas in the coming years. Enzymes, which are chemicals produced by organisms, or "bugs", have replaced traditional processes in applications like garment and fabric processing, alcohol production, paper bleaching and de-inking, effluent treatment, and leather production thus making these processes "greener". Some enzymes used in animal feeds improve nutrient absorption and reduce pollution. Chembond supplies enzymes for all these applications and plans to break ground in newer ones in the years ahead. 

Narration	10-Mar	11-Mar	12-Mar	13-Mar	14-Mar	15-Mar
Sales	174.77	206.63	228.41	262.32	270.38	301.61
Operating Profit	23.73	26.29	21.74	17.93	16.74	28.26
OPM	13.58%	12.72%	9.52%	6.84%	6.19%	9.35
Other Income	3.27	3.7	4.35	4.95	5.29	--
EBIDT	27	29.99	26.09	22.88	22.03	28.26
Interest	3.04	3.11	3.64	4.52	4.03	3.62
Depreciation	1.65	1.84	2.1	2.59	2.81	4.33
Profit before tax	22.32	24.9	20.35	15.77	15.19	20.31
Tax	7.81	8.31	6.75	7.88	5.98	5.67
Net profit	12.39	13.54	12.53	7.08	7.76	12.38
Adjusted EPS in	19.36	21.16	19.58	10.57	11.58	18.47
Dividend Payout	9.52%	10.12%	11.89%	26.84%	25.77%	25.77%

latest development :

Considered and approved the draft Share Purchase Agreement in respect of sale of its entire 49% stake in the joint venture Henkel Chembond Surface Technologies Limited to Henkel Adhesives Technologies India Private Limited ("Purchaser”), the Indian associate company of joint venture partner Henket AG & Co. KGaA, Germany, for a consideration of Rs. 180 crore, subject to adjustment for cash and debt at closing, and further subject to compliance of conditions mentioned therein and to such approvals as may be required. The Company will be continuing the Toll Manufacturing arrangement with Henkel Chembond Surface Technologies Limted for another period of 3 years as per the Toll Manufacturing Agreement.

COMPANY'S DEBIT AT 30CR TOTAL MARKET CAP IS 210CR COMPANY SOLD ONE DIVISION FOR 180 CR. COMPANY  LOOKS INTERESTING  

20 Companies Deep in Debt

High debt-to-market-cap ratio means trouble and one should steer clear of these 20 companies that are sporting high ratios 

When it comes to leverage, debt to equity is the first ratio which is checked. Since the last year the debt condition of many companies, like those in the infrastructure and the capital goods domain, is worsening. The stock market seems to be staying away from them. They have been selling their projects to restructure debt.

Another ratio which measures leverage is the debt-to-market-cap ratio. The debt-to-market-cap ratio over 1 means that the company has more debt than its current market value. Such companies will increasingly find it difficult to raise fresh funds. Also, their stock prices will remain in check. We checked the debt-to-market-cap ratio of the BSE 500 companies and found that it is at a record level. Following is the list of top 20 companies with the highest debt-to-market-cap ratios.

Company Name	Net Worth	Debt	Market Cap	Debt to
	(Rcr)	(Rcr)	(Rcr)	Market Cap
Lanco Infratech	1440	36705	1199	30.61
Bhushan Steel	9058	35224	1287	27.38
Alok Industries	3448	20012	986	20.29
Gitanjali Gems	3944	8484	435	19.5
GVK Power & Infrastructure	2778	22613	1292	17.5
Jaiprakash Associates	10074	73162	4305	16.99
Jaiprakash Power Ventures	6345	28066	2092	13.42
MTNL	5043	14216	1077	13.2
IVRCL	1948	8334	650	12.83
Shree Renuka Sugars	-498	9560	1056	9.05
Punj Lloyd	2232	6862	812	8.45
Videocon Industries	4698	40212	5016	8.02
Orchid Chemicals & Pharma	380	3414	428	7.98
KSK Energy Ventures	2873	15134	2025	7.48
ABG Shipyard	1376	5462	775	7.04
Ballarpur Industries	2297	6144	911	6.74
Usha Martin	1990	3732	576	6.48
Aban Offshore	3846	14561	2312	6.3
Rain Industries	2946	7673	1298	5.91
GMR Infrastructure	6086	45041	7642	5.89

source: value research

WPIL: Buy

WPIL             BUY 560.00

This company should continue to make big strides in India and abroad

  

Even as large-sized pump manufacturers such as KSB Pumps and Kirloskar Brothers stagnated over the last five years, Kolkata-based pump maker WPIL bucked the industry trend.

Thanks to its strategic overseas acquisitions and tie-ups, revenue in key markets such as Africa, Australia and the UK grew at a robust pace. The company has doubled its revenues in the last three years to ₹511 crore (2013-14); the strong performance led the stock price to treble over the past year.

Despite the rally, the WPIL stock seems a good buy. The expected pick-up in India Inc’s capex cycle and the resultant increase in demand for water pumps, commissioning of the company’s engineered pump plant at Nagpur and acceleration in overseas operations should help WPIL sustain momentum.

At ₹610, the stock trades at less than 10 times its 2015-16 earnings; an over 50 per cent discount to peers such as KSB Pumps and Kirloskar Brothers.

WPIL is predominantly into water pumps and offers pumps and flow control solutions through three verticals — conventional pumps, engineered pumps and turnkey projects which contribute equally to its revenues.

While the conventional pump division sells centrifugal pumps used for irrigation and water treatment applications, its engineered pumps division designs, manufactures and installs pumps to suit client requirements. The turnkey services division provides end-to-end water handling solutions.

Clients include municipalities and companies in the power generation, infrastructure, water utilisation and irrigation space. WPIL accounts for less than a fifth of the domestic water pump market, valued at over ₹7,000 crore, implying immense headroom for growth. To improve profitability, WPIL plans to increase the share of higher-margin engineered pumps and turnkey division, as indicated by the changing order book mix.

These segments accounted for almost 93 per cent of the company’s outstanding order book of ₹630 crore as of September 2014.

Better product mix

To meet the growing demand for engineered pumps, WPIL has set up a facility at Nagpur, which should aid profitability. WPIL plans to increase the sale of spare parts, which enjoy high operating profit margin.

In addition to changing the revenue mix, improvement in profitability of its domestic and overseas acquisitions has boosted WPIL’s performance.

Its joint venture with the UK-based Clyde Pumps, acquisition of Australia-based Sterling Pumps, South-African entities - Mather & Platt, PSV Pumps and APE Pumps, and Mumbai-based Mody Industries has helped WPIL expand geographically and broaden its product offerings.

For instance, WPIL gained access to the technology-intensive process pump (oil and gas pumps) segment through the acquisition of APE pumps, South Africa. The company can leverage the technology for launching process pumps in India.

Improving margin

Pruning costs and changing product mix enabled operating profit margin expansion for key subsidiaries. For instance, the aggregate operating profit margin of WPIL’s South African business has grown five-fold over the last two years to 25.4 per cent in 2013-14.

This helped WPIL improve its overall operating profit margin by 2.2 percentage points over the last three years to 16 per cent. Improving product mix — both in the domestic and international markets — should help the company improve its profit margin over the next two-to-three years.

Backward integration through acquisition of foundries such as the Mather Foundries, UK (expected to turn profitable in 2014-15) should further boost WPIL’s profitability.

The company has raised over ₹100 crore by way of qualified institutional placement (QIP) in December 2014, which will be used to fund long-term working capital requirements and other inorganic initiatives.

Mutual fund houses held 15.4 per cent stake in the company as of end December.

 SOURCE:.thehindubusinessline 

(This article was published on January 31, 2015)

I was  Recommended  in  2010 at 195.00 levels 

http://stockinventor.blogspot.in/2010/02/wpil-ltd.html

LATEST DEVELOPMENTS

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