Dalal Street Investment Journal - - REVIEWS -

We had rec­om­mended Indo Amines in the is­sue no. 10 dated Apr 17–30, 2017 when the scrip was trad­ing at Rs 80.50. Our rec­om­men­da­tion was backed by strong fi­nan­cial per­for­mance in the last five fi­nan­cial years of the com­pany and its at­trac­tive val­u­a­tions. The com­pany has also re­ceived nod for sale of 10 prod­ucts in the US mar­ket.

Indo Amines Ltd (IAL) is a man­u­fac­turer, de­vel­oper and sup­plier of fine chem­i­cals, spe­cial­ity chem­i­cals, per­for­mance chem­i­cals, per­fumery chem­i­cals and ac­tive phar­ma­ceu­ti­cals in­gre­di­ents (APIS). It was in­cor­po­rated in 1994 as a pub­lic limited com­pany. The com­pany has four man­u­fac­tur­ing sites in Bar­oda, Dom­bivali, Ra­bale and Dhule. The prod­ucts man­u­fac­tured by Indo Amines find ap­pli­ca­tions in var­i­ous in­dus­tries, such as phar­ma­ceu­ti­cals, agro­chem­i­cals, fer­til­iz­ers, petro­chem­i­cals, road con­struc­tion, pes­ti­cides, per­fumery chem­i­cals, dyes and in­ter­me­di­ates, among oth­ers.

On a quar­ter-on-quar­ter ba­sis, IAL has re­ported ro­bust num­bers. In Q4FY17, the net sales of the com­pany stood at Rs 79.91 crore, an in­crease of 19.74 per cent as com­pared to Rs 66.74 crore in Q4FY16. Its op­er­at­ing profit also in­creased by 9.78 per cent to Rs 10.16 crore in the fourth quar­ter ended March 2017, as against Rs 9.26 crore in cor­re­spond­ing quar­ter last year. The com­pany’s PAT in Q4FY17 stood at Rs 3.98 crore, up by 52.88 per cent in com­par­i­son to Rs 2.60 crore in Q4FY16.

On an an­nual ba­sis, the com­pany’s net sales stood at Rs 278.88 crore, up by 14.89 per cent in FY17, as against Rs 242.73 crore of FY16. IAL’S op­er­at­ing profit in­creased by 23.67 per cent to Rs 36.62 crore in the fi­nan­cial year 2017, as com­pared to Rs 29.61 crore of last year.

The com­pany re­ported an in­crease in profit af­ter tax by 63.56 per cent to Rs 14.05 crore, in com­par­i­son with pre­vi­ous year’s Rs 8.59 crore. Af­ter our rec­om­men­da­tion, the share price of Indo Amines has in­creased by over 21.73 per cent. We rec­om­mend our read­er­in­vestors to book profit in the stock.

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