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Chemplast Sanmar Ltd. Stock Analysis

Small Cap
Evaluated by 318 users | BSE: 506355 | NSE: CHEMPLAST |
Chemicals
Chemplast Sanmar Limited, the flagship company of the Sanmar Group, was originally incorporated on March 13, 1985 as Urethanes India Limited. Chemicals and Plastics India Limited (CPIL), was amalgamated with UIL with effect from October 1, 1991 and its name was changed from ‘Urethanes...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Mar'09Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18
Return on Capital Employed -0.96%-0.95%4.78%5.23%10.89%14.95%12.78%20%32.02%33.6%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 6759341,9212,1302,2432,6452,6432,4932,9033,030
Y-o-Y Gr. Rt.-38.4%105.7%10.9%5.3%17.9%-0.1%-5.7%16.5%4.4%
Adjusted EPS (Rs.) -6,96,453.75-6,47,626.43-2,92,179.92-3,16,754.5565,261.4721,949.13-1,13,733.9410.129.330.28
Y-o-Y Gr. Rt.-NANANANA-66.4%-618.2%NA190.1%3.3%
Book Value per Share (Rs.) 18,91,35013,23,404.8110,90,6507,65,8508,40,598.787,93,907.55,99,762.522.3539.6661.99
Adjusted Net Profit -66.8-104-46.7-50.710.43.5-18.280.8234242
Net Op. Cash Flow (Rs. Cr.) 49.6278368237288575113177642445
Debt to Cash Flow from Ops 25.094.292.834.142.650.596.064.140.671.18
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Chemplast Sanmar Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 18.2%6.2%4.7%4.4%
Adjusted EPS NA-78.5%NA3.3%
Book Value per Share -68.3-85.1-95.356.3
Share Price - - - -
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'09Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18
Return on Equity (%) -19.67-39.6-23.9-34.125.471.37-7.6430.4675.2159.59
Operating Profit Margin (%) -5.011.659.178.2210.839.46.5414.0519.0219.36
Net Profit Margin (%) -9.9-11.09-2.43-2.380.470.13-0.693.248.078
Debt to Equity 6.865.635.9785.682.677.124.091.351.06
Working Capital Days 1401529480696159555257
Cash Conversion Cycle -24-65-89-85-88-108-123-119-106-109
Entity Percentage Holding
Promoters 100.00%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

Data is not available for this company.

Data is not available for this company

Chemplast Sanmar Limited, the flagship company of the Sanmar Group, was originally incorporated on March 13, 1985 as Urethanes India Limited. Chemicals and Plastics India Limited (CPIL), was amalgamated with UIL with effect from October 1, 1991 and its name was changed from ‘Urethanes India Limited’ to ‘Chemicals and Plastics India Limited’ with effect from May 15, 1992. The name of the Company was further changed to Chemplast Sanmar Limited with effect from

Chemplast Sanmar Limited, the flagship company of the Sanmar Group, was originally incorporated on March 13, 1985 as Urethanes India Limited. Chemicals and Plastics India Limited (CPIL), was amalgamated with UIL with effect from October 1, 1991 and its name was changed from ‘Urethanes India Limited’ to ‘Chemicals and Plastics India Limited’ with effect from May 15, 1992. The name of the Company was further changed to Chemplast Sanmar Limited with effect from September 28,1995.

Chemplast’s product range falls into six distinct groups PVC Resins, Caustic Soda/ Chlorine, Chlorinated Solvents, Refrigerant Gases, Silicon Wafers and Trubore Piping Systems.

The company’s main businesses are - PVC, Chlorochemicals and Piping Systems. The synthesis that underlies the polymer chemistry of PVC manufacture is also reflective of the company’s approach to business. The basic feedstock for its PVC plant, ethylene and chlorine, come from its industrial alcohol plant at Panruti and its own chloralkali facilities at Mettur and Karaikal. The petrochemical company, Chemplast Sanmar, is the pioneering manufacture unit producing Paste Grade Resins in India. Moreover, after applying the advanced technological knowledge from ICI of the United Kingdom, it has also become the sole manufacturer of Battery Separator Grade Resins and Copolymer Suspension Resins. It is also the largest producer of chloromethanes in India.

In pursuit of its forward integration strategy, the company has re-entered the PVC pipes business. The manufacturing facilities located at Ponneri near Chennai has a capacity of around 25,000 tonnes per annum of a wide variety of pipes such as pressure pipes, casing and screen pipes, SWR pipes, plumbing pipes and conduits. The piping systems are well-known in the market for high quality under the brand name 'Trubore'.

In April 1995, Metkem Sillicon Limited (MSL), the company’s wholly owned subsidiary which was engaged in the manufacture of silicon wafers was merged with the Company pursuant to the Scheme of Amalgamation approved by the  High Court of Madras vide its Order dated December 22,1995.

The Chlorochemicals Division of Chemplast, itself the result of backward integration by the group, manufactures a wide range of products using a highly integrated manufacturing process. These downstream products are either chlorine derivatives or chlorine users in the production process. The salt needed for chlorine manufacture is supplied by Chemplast’s own salt fields at Vedaranyam.

The electrolysis process of manufacturing chlorine, is power-intensive, but Chemplast is fully equipped to generate sufficient captive power to meet its entire requirements.

All this makes Chemplast one of the most integrated chemical plants in the country with a closed manufacturing loop.

The manufacturing facilities of the company are located at Mettur, Panruti and Ponneri in Tamil Nadu and Karaikal in the Union Territory of Pondicherry.

The PVC operations of Chemplast began in May 1967 at Mettur, with technology from B F Goodrich, USA. to manufacture a variety of high quality PVC Resin products having a wide range of end use applications.

Besides speciality Battery Separator Resins and two grades of Copolymer Resins, the company also manufactures 5 grades of Suspension Resins and 3 grades of Paste (dispersion) Resins.

Chemplast Sanmar pioneered the manufacture of Paste Grade Resins in India. It is also the only manufacturer of Battery Separator Grade Resins (made with technical knowhow from ICI, UK) and Copolymer Suspension Resins in India.

In 2009 Xomox sanmar inaugurates Pacific valves division
In 2010 Coal based captive power plant goes online at Mettur

Product range

  • PVC-Suspension Resins of 106 M, 104 EPM7, 103 EP M7 and 101 EP,Paste Grade Dispersion Resins of 124, 120, 121,Copolymer Resins include CP 440 and CP 434,Battery Separator Resins which include CP 172 SG.
  • Chlorochemicals-Caustic chlor- Caustic soda lye and flakes, chlorine, hydrochloric acid, hydrogen, bromine and its derivatives.
  • Metkem silicon- Polysilicon, Monocrystalline silicon, Silicon wafers
  • Meltron- Two grades of chlorofluorocarbons (CFCs) and one grade of hydrochlorofluorocarbons (HCFCs) are manufactured and marketed under this brand name.
  • Solvents- Chloromethanes, Chloroethanes and Silicon products,Trubore piping system-pressure pipes, casing, screen pipes, plumping pipes, condults and SWR pipes.
  • It is also the only manufacturer of Battery Separator Grade Resins (made with technical knowhow from ICI, UK) and Copolymer Suspension Resins in India.

The other group companies of Sanmar Chemplast include Sanmar Chemicals Corporation, TCI Sanmar Chemicals LLC, Egypt, Sanmar Speciality Chemicals Ltd, Intec Polymers, Cabot Sanmar Ltd, Sanmar Shipping Ltd, Matrix Metals LLC, USA, Sanmar Ferrotech Ltd, Eisenwerk Erla GmbH, Germany , etc.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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