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Clariant Chemicals (India) Ltd Stock Analysis

Small Cap
Evaluated by 1752 users | BSE: 506390 | NSE: CLNINDIA |
Chemicals
Clariant Chemicals (India) is one of India's leading specialty chemicals companies and is the No. 1 player in pigments, textile chemicals and leather chemicals. The company combines leading edge technology and innovations with superior applications and customer service skills. Clariant is...

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.
Clariant Chemicals (India) Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
 Dec'10Dec'11Dec'12Dec'13Dec'14Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 32.55%70.83%19.25%16.18%11.63%5.14%3.61%1.46%2.62%7.85%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 9759791,0961,2481,0469129811,0141,0291,093
Y-o-Y Gr. Rt.-0.4%12%13.8%-16.2%-12.8%7.6%3.3%1.5%6.3%
Adjusted EPS (Rs.) 43.52113.0635.2632.1742.8818.310.363.916.8620.4
Y-o-Y Gr. Rt.-159.8%-68.8%-8.8%33.3%-57.3%-43.4%-62.3%75.5%197.4%
Book Value per Share (Rs.) 137.69182.08188.11215.43523.62232.02291.54270.61267.06282.22
Adjusted Net Profit 1163019485.811442.223.9915.847.1
Net Op. Cash Flow (Rs. Cr.) 16413.876.6-31.8-59.7-11981.6-1.129.499.1
Debt to Cash Flow from Ops 0.01000-0.1600000
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.
Clariant Chemicals (India) Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 1.3%0.9%3.7%6.3%
Adjusted EPS -8.1%-13.8%25.3%197.4%
Book Value per Share 8.3-11.6-1.15.7
Share Price -5.7% -13% -13.5% 14.2%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Dec'10Dec'11Dec'12Dec'13Dec'14Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 32.4670.7119.0515.9411.65.113.561.392.557.43
Operating Profit Margin (%) 15.9415.4612.739.842.515.876.844.574.88.75
Net Profit Margin (%) 11.930.798.586.8710.934.632.440.891.544.31
Debt to Equity 00000.0100000
Working Capital Days 102108110113143131149164179186
Cash Conversion Cycle 672128474344491817
Entity Percentage Holding
Promoters 51.00%
Institutions 4.50%
Non-Institutions 44.49%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Clariant Chemicals (India) Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Clariant Chemicals (India) Ltd is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Clariant Chemicals (India) Ltd's performance infers:

Clariant Chemicals (India) Ltd earnings have declined by -13.8%, whereas share price has depreciated -13% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Clariant Chemicals (India) Ltd share prices over the last 10 years. Here is what we found out:

Clariant Chemicals (India) Ltd share price has depreciated -6.5% annually over the past ten years.

Clariant Chemicals (India) is one of India's leading specialty chemicals companies and is the No. 1 player in pigments, textile chemicals and leather chemicals. The company combines leading edge technology and innovations with superior applications and customer service skills. Clariant is committed to sustainable growth in India. Their 1,200 employees generate sales of Rs 950 crore through four business divisions - Textile, Leather and Paper Chemicals, Pigments and Additives,

Clariant Chemicals (India) is one of India's leading specialty chemicals companies and is the No. 1 player in pigments, textile chemicals and leather chemicals. The company combines leading edge technology and innovations with superior applications and customer service skills. Clariant is committed to sustainable growth in India. Their 1,200 employees generate sales of Rs 950 crore through four business divisions - Textile, Leather and Paper Chemicals, Pigments and Additives, Functional Chemicals and Masterbatches.

Their innovative products play a key role in their customers' manufacturing and treatment processes and add value to their end products. Their success is based on the knowhow of their people and their ability to identify new customer needs at an early stage and to work together with customers to develop innovative, efficient solutions. Clariant's presence in India through its affiliates goes back to more than five decades. Its journey began in 1947 with the founding of Sandoz Products . The acquisition of the Hoechst specialty chemicals business in 1997 brought Colour-Chem and its subsidiaries Vanavil Dyes and Chemicals and Kundalika Investments into its fold. Thereafter, the acquisition of BTP plc in 2000 led to the integration of a fourth company BTP India into the group's operations in India. In 2006, four of the affiliates were integrated into Colour-Chem and the company was subsequently renamed Clariant Chemicals (India).

Clariant Chemicals (India) represents a valuable repository of manufacturing and marketing experience. Its constituents were all well respected companies who played an invaluable role in the development of the textiles, leather, paints, plastics, printing inks and agrochemicals industries in India.

Divisions:

Textile, Leather and Paper Chemicals-

The division is one of India's leading suppliers of specialty chemicals and dyes for the textile, leather and paper industries. The textile business provides complete solutions from fiber to fabric, through a wide range of chemicals for pre-treatment, dyeing and finishing and also dyes for various substrates and applications. With a state-of-the-art Technical Service center in Thane and four regional laboratories in Surat, Panipat, Tirupur and Bangalore, it ensures quality and speedy service that meets the specific requirements of its customers.

Pigments and Additives-

Clariant Chemicals (India) is India's leading manufacturer and supplier of pigments and their preparations. The company pioneered the manufacture of pigments in India. The division develops and produces pigments for paints, plastics, inks, cosmetics, detergents and special applications like viscose, latex etc. The product range includes high-performance pigments to meet the exacting demands of the automotive, coil coating industries. Printing pigments are supplied to the printing ink industry and, increasingly, for non impact printing, ink jet and laser printing.

Functional Chemicals-

The Functional Chemicals Division is the newest division in Clariant Chemicals (India) . Currently, its activity consists mainly of supplying products from Clariant associate companies - both through indents and through stock and sale - for the Indian Detergents, Crop Protection, Personal Care, Performance Chemicals and Metalworking and Oilfields markets.

Masterbatches-

Clariant Chemicals (India) (then Sandoz) started its Masterbatches business in the nineties with Masterbatches for Plastics and Fibres. As Sandoz, it was the first company in India to bring the concept of Masterbatches to India. The division supplies coloured concentrates, additives and special mixtures of these components.

Milestones:

  • 1947 -Sandoz Products begain operations in India.
  • 1961 -The company's name was changed to Sandoz (India)
  • 1962 -Manufacture of dyes and chemicals commenced at Kolshet
  • 1996 -The company's name was changed to Clariant (India)
  • 1999 -Company achieved Trading House status 
  • 2001 -Manufacture of Masterbatches commenced at Kolshet

Awards
2010
-Clariant Chemicals (India) Limited’s Roha site won the ‘Vasundhara Award - 2009
-Clariant Chemicals (India) Limited’s Industrial & Consumer Specialties Business was awarded with the Frost & Sullivan 2010 India Excellence Award.
2011
-Clariant Chemicals (India) Limited has been honored by the Dyestuffs Manufacturers Association of India (DMAI) with two Awards: One for‘Excellent Performance in the field of Pollution Control by a large Scale Unit for the year 2010-2011 and the other for Excellent Performance in the field of Safety & Hazards Control by a Large Scale Unit for the year 2010-11.
2012
-Clariant Chemicals (India) Limited wins National Safety Council Award in Maharashtra.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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