VIDHI DYESTUFFS ----ADDING COLOURS TO YOUR PORTFOLIO.

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VIDHI DYESTUFFS MANUFACTURING LIMITED.
MARKET CAP-312 CR
CMP- 62
BOOK VALUE-9.94
STOCK PE-22
FACE VALUE -1 RS
DIVIDEND YIELD-0.64%

VIDHI DYESTUFFS MANUFACTURING LIMITED BELONGS TO THE SPECTIALITY CHEMICAL SECTOR AND IS A GLOBALLY LARGE PLAYER OF SYNTHETIC FOOD GRADE COLOURS,DYES AND PIGMENTS.INCOROPRATED IN JANUARY 94 AS ' VIDHI DYESTUFF MANUFACTURING PVT LIMITED ,IT IS RENAMED AS VIDHI DYESTUFF MANUFACTURING LIMITED AND BECOME PUBLIC LIMITED COMAPNY IN MARCH 95.IT IS A ISO 9001: 2000 CO,ISO 22000:2005 COMAPANY AND HAS "HACCP",KOSHER AND HALAL CERTIFICATION.THE MANUFACTURING UNITS HAS BEEN AUDITED BY "USA FDA".THE COMPANY HAS CLIENTS IN ALL OVER THE WORLD IN MORE THAN 85 COUNTRIES AND HAS STRONG RELATIONS WITH THE VARIOUS LEADERS OF PHARMACEUTICAL,FEEDS,DAIRY  INDUSTRIES BUILT OVER TWO DECADES.

SECTOR OVERVIEW-

WITH THE APPROVAL OF 100% IN CHEMICAL SECTOR AND REDUCED EXCISEE DUTY FROM 14% TO 10%  ARE ADVANTAGES AND WEAK RUPEE HELPS TO INCREASE OPM AS 95% OF THE REVENUE ARE FROM EXPORTS.

HIGHLIGHTS

1) IT IS A GLOBALLY LARGE PLAYER AND LEADING MANUFACTURER OF SYNTHETIC FOOD GRADE COLOURS, DYES AND PIGMENTS WITH A CURRENT CAPACITY OF 2500 MTPA. THE COMPANY IS EXPECTED TO INCREASE ITS CAPACITY TO 3500MTPA IN A  YEAR AND TO 8000 MTPA BY 2020.

2) THE COMPANY PLANS TO BE LISTED IN NSE WHICH WILL INCREASE ITS LIQUIDITY

  AND ALSO  BUILT CONFIDENCE  IN SHAREHOLDERS.

3) HEALTHY REVENUE GROWTH FROM 2008(30.69 CRORES) TO 202 CRORES IN 2015. ESPECIALLY IT REGISTERED 47% GROWTH IN Q1FY16.LAST FIVE YEARS COMPOUNDED SALES GROWTH IS AT 30%.

4) ROBUST PAT GROWTH WITH 0.82 CRORES IN 2008 TO 13.78 CRORES IN 2015. LAST FIVE YEARS COMPOUNDED PAT GROWTH  IS AT 29%NET PROFIT SHOWS 56% JUMP IN Q1FY16 AS COMPARED TO LAST QUARTER.

5) OPM INCREADED FROM8.40 % IN MARCH 08 TO 14.93% TTM AND COMPANY IS EXPECTED TO INCREASE IT TO MORE THAN 20% TILL 2020.

6) LAST FIVE YEARS ROE IS AT 15%. 

7)  THE DEBT TO EQUITY RATIO IS DECRESING AND THE INTERST COVERAGE RATIO IS ALSO QUITE IMPRESSIVE.

8) COMPANY IS MAKING PROFITS AND IS PAYING HELTHY CORPORATE TAX.

9)  THE COMPANY IS PAYING DIVIDEND AT 22%

10) THE COMPANY IS EXPECTED TO GROW AT  24% CAGR IN REVENUE GROWTH AND 40% PAT IN THE COMING YEARS.

	Mar 09	Mar 10	Mar 11	Mar 12	Mar 13	Mar 14	TTM
Sales	26.25	24.25	30.36	30.69	39.29	71.14	98.05
Expenses	24.56	22.81	27.66	28.11	35.35	65.74	90.98
Operating Profit	1.69	1.44	2.70	2.58	3.94	5.40	7.07
OPM	6.44	5.94	8.89	8.41	10.03	7.59	7.21
Other Income	2.20	0.94	0.41	0.44	0.37	1.23	0.78
Interest	0.26	0.36	0.59	0.66	0.84	1.16	2.26
Depreciation	0.77	0.86	0.87	0.89	0.96	1.00	0.92
Profit before tax	2.86	1.40	1.65	1.50	2.51	4.47	6.03
Tax	0.75	0.26	0.63	0.68	0.89	1.62	2.35
Net Profit	2.11	1.14	1.02	0.82	1.62	2.85	3.68
EPS (unadj)	4.02	0.23	0.20	0.16	0.32	0.57	0.74
Dividend Payout	35.55	0.00	0.00	0.00	0.00	0.00	0.00

SUMMARY

                         SO WITH ALL POSITIVES FOR THIS SECTOR AND INCREASE IN CAPACITY OF ONE OF LARGEST MANUFACTURER. AND REDUCTION IN THE DEBT IN COMING YEARS, THE REVENUE GROWTH , PAT AND EPS  IS  EXPECTED TO INCREASE. IN COMING YEARS.
Disclosure: I am not holding any stocks of this company. Please do your own due diligence and do research before buying the stock.