Samrat Pharmachem is in the business of iodine derivatives. Started in 1992, Samrat is a highly specialized company, that exports to various countries across the world along with having a strong foothold in the domestic market.
For more info check, http://www.samratpharmachem.com/
NUMBERS - THE LATEST
Market cap: 24 crores CMP on Day30 Mar2017: Rs 75 BV: 49
Revenue FY16: 61 cr Net profit FY16: 0.3 crore approx FV: 10
POSITIVES
1. Revenues have been around 20 crores per quarter consistently over the last 3 quarters along with improving profit margins.
2. Company made a net profit of 30 lakhs in entire year last year. This year nine-month profit is almost 1.5 crores.
3. Samrat manufactures iodine salts and bromine salts. The company has one of the widest range of iodine derivatives.
4. The products of Samrat is used in a wide range of industries. Pharma, Chemical, Animal feed, Printing, Textile and others.
INTERESTING INFO
1. During last year the company increased export revenue from 8.5 cr to 11.7 cr.
2. Long term debt of company is only 1.5 cr and company has cash-on-hand of around 3.5 cr and current investments of 2 cr
3. The company was recognized as one of the Top 500 small and mid manufacturing companies in India.
4. Samrat has committed to participate in CPHI, an industry event, to be held in Frankfurt during October 2017. A step in the right direction to improve customer base, and hence revenues.
NEGATIVES - POSSIBLE RISKS
1. Any global event impacting the margins of the company.
MY TAKE
Samrat is a nano-cap company with market cap around 25 crore. However it is a high quality company with specialized products, hence forming a niche. Improved profit margins and export revenue indicates management steps is in the right direction. Doubling from current levels is quite probable.
However with increased capacity utilization, revenue growth and enhanced profits, the stock could head much higher over the medium term.
Samrat is a potential multibagger!!
Disclosure: I own shares in Samrat Pharmachem
For commercial collaboration, consultation and JV ideas;
you can contact me via zorbayogi9@gmail.com
Important Note: Potential multibaggers are those stocks which have potential to give 100 - 500% profits. Obviously such returns take time. Probably 2 - 3 years or more. Short term volatality is the reality of the stock market and that will always happen. Short term movements(upside and downside) are impossible to predict. Only invest funds that you will not need for the next 3 - 4 years. As long as you buy a stock for the right reason and are convinced about the future prospects of the company, there is no need to worry if the share price goes down and stays down for a period of time after you buy; provided you have followed the cardinal stock market mantra BUY LOW.
Very important note: The objective of this blog is to share knowledge and info about multibagger ideas/opportunities. Neither is this trading website nor an analyst website nor a Buy/Sell call website. For stock market success, always do your home work, own assessment and make your own decisions.
For more info check, http://www.samratpharmachem.com/
NUMBERS - THE LATEST
Market cap: 24 crores CMP on Day30 Mar2017: Rs 75 BV: 49
Revenue FY16: 61 cr Net profit FY16: 0.3 crore approx FV: 10
POSITIVES
1. Revenues have been around 20 crores per quarter consistently over the last 3 quarters along with improving profit margins.
2. Company made a net profit of 30 lakhs in entire year last year. This year nine-month profit is almost 1.5 crores.
3. Samrat manufactures iodine salts and bromine salts. The company has one of the widest range of iodine derivatives.
4. The products of Samrat is used in a wide range of industries. Pharma, Chemical, Animal feed, Printing, Textile and others.
INTERESTING INFO
1. During last year the company increased export revenue from 8.5 cr to 11.7 cr.
2. Long term debt of company is only 1.5 cr and company has cash-on-hand of around 3.5 cr and current investments of 2 cr
3. The company was recognized as one of the Top 500 small and mid manufacturing companies in India.
4. Samrat has committed to participate in CPHI, an industry event, to be held in Frankfurt during October 2017. A step in the right direction to improve customer base, and hence revenues.
NEGATIVES - POSSIBLE RISKS
1. Any global event impacting the margins of the company.
MY TAKE
Samrat is a nano-cap company with market cap around 25 crore. However it is a high quality company with specialized products, hence forming a niche. Improved profit margins and export revenue indicates management steps is in the right direction. Doubling from current levels is quite probable.
However with increased capacity utilization, revenue growth and enhanced profits, the stock could head much higher over the medium term.
Samrat is a potential multibagger!!
Disclosure: I own shares in Samrat Pharmachem
For commercial collaboration, consultation and JV ideas;
you can contact me via zorbayogi9@gmail.com
Important Note: Potential multibaggers are those stocks which have potential to give 100 - 500% profits. Obviously such returns take time. Probably 2 - 3 years or more. Short term volatality is the reality of the stock market and that will always happen. Short term movements(upside and downside) are impossible to predict. Only invest funds that you will not need for the next 3 - 4 years. As long as you buy a stock for the right reason and are convinced about the future prospects of the company, there is no need to worry if the share price goes down and stays down for a period of time after you buy; provided you have followed the cardinal stock market mantra BUY LOW.
Very important note: The objective of this blog is to share knowledge and info about multibagger ideas/opportunities. Neither is this trading website nor an analyst website nor a Buy/Sell call website. For stock market success, always do your home work, own assessment and make your own decisions.
