Buy Shree Pushkar Chemicals and Fertilisers Ltd: Avinnash Gorakssakar, Joindre Capital

Buy Shree Pushkar Chemicals and Fertilisers Ltd: Avinnash Gorakssakar, Joindre Capital
Rate this post

The second stock we like is midcap speciality chemical and dye stuff company called Shree Pushkar Chemicals and Fertilisers Ltd. Shree Pushkar Chemicals is largely into dye stuffs and speciality chemicals. It is also into cattle feeds and single super phosphate fertilisers. Last year, the company posted a very strong set of numbers that is for FY17 it posted a top line of Rs 310 crore EBITDA of almost Rs 46 crore and a bottom line of Rs 30 crore. These were quite strong as compared to last year. Our sense is that FY18 also looks a lot better as the company has gone into expansion mode both for its dye stuff and speciality chemical business. For the dye stuff business, it has commissioned a new plant of 3000 tons capacity in the fourth quarter of FY17 and which will make a full impact in FY18 and FY19. It has also commissioned a new Hacid plant in the fourth quarter of FY17 which will actually add to its EBITDA margins. It is also making conscious efforts to increase the presence of cattle feeds and single super phosphate fertilisers by getting into branding initiatives with other players. The company should post earnings of almost Rs 1718 from around Rs 10 for FY17 and with a strong earnings growth of almost 4045% over the next 1218 months a significant amount of rerating can be expected. We have a target price of around 250.

Leave a Comment

Your email address will not be published. Required fields are marked *