Saturday, April 2, 2016
Himadri Chemicals & Industries Ltd @ 15.75
1. Himadri Chemicals & Industries Ltd is a 1 rupee face value Commodity chemical company.
2. Himadri Chemicals & Industries Limited is the largest coal tar pitch manufacturing company in India.
Short Notes on Company bussiness:-
Himadri Chemicals & Industries Limited is a carbon specialist, developing coal tar by-products and derivatives (advanced carbon material, carbon black, corrosion protection and naphthalene)
The Company addresses growing needs of sectors like aluminium, graphite, infrastructure, lithium-ion battery, tyre and rubber applications
The environmentally conscious company has also invested in 2.5 MW of wind power generation in Dhule (Maharashtra, India).Largest Indian coal tar pitch (CTP) manufacturer
Six manufacturing facilities located in India and one in China. company.
3. Year high of Himadri Chemicals & Industries Ltd is 25.80 year low was 12.40 and stock traded at 15.75,
Year high/ low ratio near 2.07 and stock turn around from loss to profit in Dec 2015 result so as per my rule if company put positive results after year low then year high/low ratio is accepted till 2.5, If you are new reader of my blog and not familiar with my research terms then please see my research terms at this link
4. Promoters of Himadri Chemicals & Industries Ltd hold 44.63%
See full list of public shareholding including FII and DII here:-
Himadri Chemicals & Industries Ltd has informed BSE that the "Stakeholders Relationship Committee" of the Board of Directors of the Company at its' meeting held on March 25, 2016 has allotted 3,26,75,297 Equity Shares of Re. 1/- each at a price of Rs.19/- per share (including a premium of Rs. 18/- per share) aggregating to Rs. 62,08,30,643/- on preferential basis to the promoter group company in terms of the Special Resolution passed by the shareholders at the Extra Ordinary General Meeting held on March 22, 2016. It means promoters increase their stake and buy their company own shares @19 per share then why not we buy this stock from open market @ 15.75 only?
5.Himadri Chemicals & Industries Ltd pay regular dividends from 2007 to 2014 but due to loss in 2015 this stock not pay diviend in 2015 but I think after turn around in profits company again start dividend payouts.
6. Base price of Himadri Chemicals & Industries Ltd is 19.34 So CMP is 20 % below from base price so I think this time is best suitable time for buying himadri chemicals for long term.Click here to download last 3 year closing price with graph
7. No any bonus issue right issue and bulk deals is recorded in last 2 year.
8. Himadri Chemicals & Industries Ltd net sale per share of FY 14-15 is 35.71.
9. Net sale per share is good and I knew that stock recently diluted his equity by allotment of shares to promoters as I described in above point 4 so after this equity dilution net sale per share is also diluted near 32, That’s not bad So for calculating fundamental target price take 32 instead of 35.71.
Read my book or this article to knew more about fundamental target price of a stock.
9. Book value of Himadri Chemicals & Industries Ltd is 19.85 So in book value term this stock is a value buy at CMP.
8. Overall I think Himadri Chemical is best long term penny share investment for 1-2 year views .
9. 200 DMA of Himadri Chemicals & Industries Ltd is 16.08 So at CMP 15.75 Himadri chemicla traded very near in his 200 DMA So I think 200 DMA may be cross in coming days then this stock is also suitable for trading .
10. My recent updates :- How to Get regular tax free monthly income with mutual funds dividend or SWP.
11. Disclaimer:- This is not an advisory service to buy or sell. The contents of “this research report” are only for educational purposes. No liability is accepted for any content in “this research report”. The author is neither a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time.The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions. Please read full disclaimer at the bottom of my blog.
12.Discloser:- I Mahesh Chander Kaushik author of this research report is an existing research analyst and passed NISM certification for research analysts. I am also registered under SEBI(RESEARCH ANALYSTS) REGULATIONS, 2014 ( SEBI Registration Number INH 100000908 ) hereby disclose about my financial interest in the subject company and the nature of such financial interest:- 1 Me and my associates or relatives have not hold any share of Himadri Chemicals & Industries Ltd so my personal interest is not included in this stock. 2. Me and my associates or relatives have not any actual/beneficial ownership of one percent or more securities of the subject company ( Himadri Chemicals & Industries Ltd). 3. Me and my associates or relatives have not any other material conflict of interest at the time of publication of the research report. 4. Me and my associates or relatives have not received any type of compensation from the subject company(Himadri Chemicals & Industries Ltd) in the past twelve months. 5. I am not served as an officer, director or employee of the subject company ( Himadri Chemicals & Industries Ltd). 6. I have been not engaged in market making activity for the subject company (Himadri Chemicals & Industries Ltd).
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