INEOS Styrolution India Ltd Stock Analysis

BSE: 506222 | NSE: INEOSSTYRO | Chemicals | Small Cap

BSE Share Price 06-Dec-2022 18:01
823.30 -13.85 (-1.65%)

DeciZen - Make an Informed Decision on INEOS Styrolution

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

INEOS Styrolution Price Chart

P/E Ratio (SA) :
5.64
Market Cap :
1,447.8 Cr.
52-wk low :
706.7
52-wk high :
1,456
Bole Toh?

1. Is INEOS Styrolution India Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that INEOS Styrolution India Ltd is a below average quality company.

2. Is INEOS Styrolution India Ltd undervalued or overvalued?

The key valuation ratios of INEOS Styrolution India Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is INEOS Styrolution India Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of INEOS Styrolution India Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of INEOS Styrolution:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

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.
INEOS Styrolution India Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Dec'12Dec'13Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 13.4%11.4%8.9%13.4%11.3%10.3%0.6%4.1%33.3%36.5%-
Value Creation Index -0.0-0.2-0.4-0.1-0.2-0.3-1.0-0.71.41.6-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 9891,1151,1711,5841,4821,8952,0911,5791,6312,1792,336
YoY Gr. Rt. %-12.7%5%35.3%-6.4%27.9%10.3%-24.5%3.3%33.6%-
Adj EPS 37.333.419.145.342.739.9-2.213.3157.4184.5146.1
YoY Gr. Rt. %--10.5%-42.7%136.9%-5.7%-6.6%-105.6%NA1086.9%17.2%-
BVPS (₹) 247.4271.4229.2299.5333.8366.5354.4346.5505.4487444.9
Adj Net Profit 65.558.733.679.675.170.1-3.923.3277324257
Cash Flow from Ops. -23.850.515.728.5-15.6173-36166385356-
Debt/CF from Ops. -2.81.85.66-13.40.6-7.410.10-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 9.2%8%1.4%33.6%
Adj EPS 19.5%34%NA17.2%
BVPS 7.87.911.2-3.6
Share Price 1.6% -4.8% 7.3% -40.7%

Key Financial Parameters

Performance Ratio Colour Code Guide

Dec'12Dec'13Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 16.112.98.615.513.511.4-0.63.83737.231.4
Op. Profit Mgn % 10.48.56.47.59.77.414.725.421.916.4
Net Profit Mgn % 6.65.32.955.13.7-0.21.51714.911
Debt to Equity 0.20.20.20.30.40.20.40.30.100
Working Cap Days 189219181148162156141162145115123
Cash Conv. Cycle 6548364157535673595382

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 31.30%

Sales growth has been subdued in last 3 years 1.39%

Net Profit has been subdued in last 3 years 0.00%

Sales growth is not so good in last 4 quarters at 9.99%

Latest Financials - INEOS Styrolution India Ltd.

Standalone Consolidated
TTM EPS (₹) 146.1 10.8
TTM Sales (₹ Cr.) 2,336 2,021
BVPS (₹.) 444.9 0
Reserves (₹ Cr.) 765 469
P/BV 1.85 0.00
PE 5.64 76.51
From the Market
52 Week Low / High (₹) 706.70 / 1456.00
All Time Low / High (₹) 10.00 / 1886.80
Market Cap (₹ Cr.) 1,448
Equity (₹ Cr.) 17.6
Face Value (₹) 10
Industry PE 34

Management X-Ray of INEOS Styrolution :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of INEOS Styrolution

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

INEOS Styrolution India Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of INEOS Styrolution on 06-Dec-2022 18:01 is : 823.3.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 06-Dec-2022 18:01 the market cap of INEOS Styrolution stood at ₹ 1,447.8.
The latest PE ratio of INEOS Styrolution as of 06-Dec-2022 18:01 is 5.64.
The latest PB ratio of INEOS Styrolution as of 06-Dec-2022 18:01 is 1.85
The 52-week high of INEOS Styrolution is ₹ 1,456 and the 52-week low is ₹ 706.7.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of INEOS Styrolution is ₹ 2,336 ( Cr.) .

About INEOS Styrolution India Ltd

Styrolution ABS (India) Ltd was earlier known as INEOS ABS (India). The Company was originally incorporated as ABS Plastics in the year 1973 then changed its name to ABS Industries. The erstwhile ABS Industries now INEOS ABS (India) (the ‘Company’) w.e.f. June 17, 2008, is a pioneer in developing the market for the versatile engineering thermoplastic material – Acrylonitrile Butadiene Styrene (ABS) in India, when it started its operation in 1978 by manufacturing and marketing ABS polymer under the brand name of ABSOLAC. Since then the company has been continuously growing through a planned process of aggressive market development and consolidation, technology updation and capacity build up. 

 The company also set up India’s first modern and dedicated Styrene Acrylonytrile (SAN) plant in 1993, with technical know-how from JSR, Japan for manufacture of various grades of ABSOLAN - SAN.  In early 1997, Bayer Industries Private, a 100% holding company of the German major, Bayer AG acquired a majority share of 51% in ABS Industries. The company then became a part of the Bayer group and was rechristened as “Bayer ABS”. In early 2004, Bayer Group globally decided carving out of styrenic-based Polymer products, beside other business, into a new group Lanxess, the said business was then globally transferred to a 100% subsidiary of Bayer AG to a Company styled as Lanxess Deutschland GmbH. Once the business operations at Bayer ABS were regrouped within the Lanxess group, Lanxess AG has become an ultimate holding Company under the spin off process.  

Lanxess India (which is 100% subsidiary of Lanxess AG Germany) acquired 89,63,564 equity shares of Rs10 each in Bayer ABS Ltd (BABS) constituting 50.97% of the paid up share capital of Bayer ABS from Bayer Industries and became a holding Company of the Company.  Consequent to acquisition of 50.97 % share capital by Lanxess India and the shareholders approval at the 32nd Annual General Meeting held on 28th April, 2005, the Office of Registrar of Companies (ROC) has approved the change of name of the Company from Bayer ABS to Lanxess ABS w.e.f. 29th April, 2005.  The Company is a public listed company and actively traded in National stock Exchange (NSE) & Bombay Stock Exchange (BSE).  

The 3rd major global Chemical giant INEOS Group, approx. turnover of 45 $ Bn, entered into an agreement with Lanxess AG, Germany, to acquire world over the styrenic business (ABS) and in the process INEOS ABS (Jersey) entered into an agreement with the promoters of the Company and Lanxess India to acquire major the stake in Lanxess ABS. INEOS Group made an offer to the general shareholders through open offer, to acquire major stake in Lanxess ABS to an agreed price stated in the open offer.  Thus INEOS ABS (Jersey), then acquired major stake constituting 83.33 % of total paid up capital, which concluded on March 5, 2008. Thus, from 13th March, 2008, INEOS ABS (Jersey), part of chemical major global group 'INEOS', held 83.33% of paid up capital comprising 14,653,705 no. of Equity Shares of the Company, became the holding Company of Lanxess ABS and controlled the management and affairs of the Company. The office of Registrar of Companies has then granted change of name w.e.f. June 17, 2008 to INEOS ABS (India).  The company has introduced tailor-made grades in ABS, to suit specific requirements of customers who are the leading manufacturers in the field of household, automotive, electronic and telecom sector. 

In 2012, Styrolution (Jersey) Limited, UK, acquired major stake constituting 87.33 % of total paid up capital of the Company, thereby becoming the holding Company of INEOS ABS (India) Limited. After following appropriate required procedure, the name of the Company was changed from “INEOS ABS (India) Limited” to “Styrolution ABS (India) Limited” effective from May 1, 2012.

As a part of strategic joint venture globally on 28th January, 2014, the Styrolution (Jersey) Limited, the holding Company of the Styrolution ABS India Limited, has transferred its entire holding of 75% Equity shares to Styrolution South East Asia Pte. Ltd., Singapore. Accordingly, the holding Company of Styrolution ABS India Limited is Styrolution South East Asia Pte. Ltd, Singapore, effective from 28th January, 2014.

Some of the prominent clients of the Company include Samsung, LG, Videocon, BPL, Ford, Hero Honda, Cello, Lexi and Bajaj. With an uptrend in consumer spending on automobiles, white goods and electronic products the demand for ABS resin is growing up significantly.  With a well defined accent on quality monitors on inputs, process controls, packaging and finished products, INEOS ABS (India) offers its customers an extensive range of performance thermoplastics - from its indigenous production. The range of products and the variety of grades for a given product are developed and made, to meet almost all the requirements of many sectors of the industry demanding high performance & quality.  Fuelled by the increasing worldwide demand for engineering thermoplastics, INEOS ABS (India), a public listed company in NSE & BSE has already commissioned its expansion of SAN capacity from 36,000 tpa to 65,000 tpa, which has helped increasing its capacity of ABS from 60,000 tpa to 1,00,000 tpa. This expansion to 100,000 tonnes per annum is being funded through internal accruals. The SAN polymer is being used for captive consumption for making ABS and is also being sold as merchant product.   

The company has three plants:

1. Nandesari Plant:   Nandesari Plant is located in GIDC Industrial Estate Nandesari. This plant manufactures ABSOLAC (Acrylonytrile Butadiene Styrene). The plant was started with an installed capacity of 2000 Tones/ annum in 1978. The Plant is now doing exceedingly well. This year the production of ABS has remained at the level of 50000 MT.  

2. Katol Plant:   This fully automated plant produces the ABSOLAN Plastic Resin. The plant was started in 1993.  

3. Wind Farm:  Wind farms have been an important source of energy generation which in turn has reduced the power consumption worth 8 mio Units.

Products:

1. Absolac - (ABS) - Absolac is plastic resin produced from Acrylonitrile, Butadiene & Styrene. It is a widely used intermediary product. Their application ranges from home appliances to Automobile and consumer durables to business machines.       

2. Absolan - (SAN) - Absolan is also a polymerized plastic resin which is produced from Styrene & Acrylonitrile. It has its main applications in the Lightings, Stationeries and novelties, Refrigerators and cosmetic packing.

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