Buy Daikafill Chem.
I had initiated a buy call on Daikafill on Moneycontrol at a price of Rs 22.90. The rationale for the same is as under:
1. Consistent increase in topline over the years. Net profit for June FY 15, if annualised, would be more than that of FY 14 nos.
2. Collaboration with a Japanese technology and has clinetles like Clariant, KIWA, ERCA spa, DAIKA (Japan) and many more.
3. Japanese companiees are taking big interest in India and lot of business will be there in future. This company will be best placed to reap the benefits going forward.
4. With 50% raw material inmports, company would benefit from stablised INR rate.
5. Consistently paying dividend for past 6 years.
Buy call initiated at Rs 22.90 on moneycontrol for long term.
I had initiated a buy call on Daikafill on Moneycontrol at a price of Rs 22.90. The rationale for the same is as under:
1. Consistent increase in topline over the years. Net profit for June FY 15, if annualised, would be more than that of FY 14 nos.
2. Collaboration with a Japanese technology and has clinetles like Clariant, KIWA, ERCA spa, DAIKA (Japan) and many more.
3. Japanese companiees are taking big interest in India and lot of business will be there in future. This company will be best placed to reap the benefits going forward.
4. With 50% raw material inmports, company would benefit from stablised INR rate.
5. Consistently paying dividend for past 6 years.
Buy call initiated at Rs 22.90 on moneycontrol for long term.
Sir
ReplyDeleteAs per BSE the result for June quarter is not so good as March quarter . Then I can't understand how you say the toplines and profit are increasing . Can you please explain little bit please - so that we can take a decision
Bro,
DeleteDaikafill derives almost 70% of its sales from exports markets primarily US and Europe. Though I agree with you that sales have gone down in June 14 Vs Mar 14, however it is difficult to ascertain as of now whether it is due to slowdown in domestic markets or export markets. Please note USD/EUR – INR rates would have an impact on exports INR realisations which may impact the topline. Company’s topline has been increasing YOY for over 5 years and I don’t see any reason for it to suffer. Lets give it one more quarter.
Besides that the company is primarily in the area of optical brighteners which seems to have a great future. Leading player in chemicals, Deepak Nitrite Ltd., is also venturing into the same. Link below.
http://www.business-standard.com/content/b2b-chemicals/whitening-agents-to-brighten-deepak-nitrite-s-business-prospects-114052201086_1.html
Further BASF had shifted its optical brightener business to India seeing greater demand in future.
http://www.business-standard.com/content/b2b-chemicals/whitening-agents-to-brighten-deepak-nitrite-s-business-prospects-114052201086_1.html
Further, Japanese tie up is going to be a great booster on expectation of huge Japanese interest in india.
Company also has a JV with Erca Group which has many offices globally. At this juncture I am not sure about the value addition from this however ERCA looks to be a decently big group. http://www.ercagroup.com/
Hope it will be of some help to you.
Dear Sir Thank you very much for your feedback . As you said we will see one more quarter
ReplyDeleteThanks a lot