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Omkar Speciality Chemicals Ltd. Stock Analysis

Small Cap
Evaluated by 565 users | BSE: 533317 | NSE: OMKARCHEM |
Chemicals
Omkar Speciality Chemicals is mainly engaged in the manufacture and sale of Speciality Chemicals and Intermediates for Chemical and Allied Industries. It has four units at MIDC, Badlapur (East), District - Thane, Maharashtra. The company was originally incorporated as Omkar Speciality...

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'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Capital Employed 19.13%15.36%13.77%11.89%8.61%8.37%9.89%7.26%-35.31%-15.32%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 68.110716720221019330031719242.7
Y-o-Y Gr. Rt.-56.9%56.4%20.7%4%-7.8%55.2%5.6%-39.5%-77.7%
Adjusted EPS (Rs.) 4.395.178.3910.347.598.9311.352.2-33.38-12.01
Y-o-Y Gr. Rt.-17.8%62.3%23.2%-26.6%17.7%27.1%-80.6%-1617.3%NA
Book Value per Share (Rs.) 13.7846.9953.9262.7768.4679.1888.17-1.37-60.79-71.96
Adjusted Net Profit 5.110.216.520.314.918.423.44.5-68.7-24.7
Net Op. Cash Flow (Rs. Cr.) 6.34.1-0.40.124.152.9-14.1107261.4
Debt to Cash Flow from Ops 4.2610.97-215.77960.526.383.32-13.191.688.97166.51
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.
Omkar Speciality Chemicals Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -5.1%-27.3%-47.8%-77.7%
Adjusted EPS -211.8%-209.6%-201.9%NA
Book Value per Share -220.2-201-193.50
Share Price -21.6% -47.3% -53.9% 12%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) 36.8818.7716.6217.4511.2612.2113.565.06107.4118.1
Operating Profit Margin (%) 18.8420.0219.918.0315.915.3915.6818.09-22.63-3.06
Net Profit Margin (%) 7.449.519.8610.077.119.57.781.43-35.85-57.95
Debt to Equity 1.690.490.740.961.151.081.02-64.17-1.86-1.55
Working Capital Days 202218214239295341242230213253
Cash Conversion Cycle 9978911261571541024843-31
Entity Percentage Holding
Promoters 27.62%
Institutions 0.01%
Non-Institutions 72.38%
Pledged *58.4037.1937.2363.3359.0037.2376.9476.9476.9476.94
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Omkar SpecialityChem's performance infers:

Omkar SpecialityChem earnings have declined by -209.6%, whereas share price has depreciated -47.3% 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.

Data is not available for this company

Omkar Speciality Chemicals is mainly engaged in the manufacture and sale of Speciality Chemicals and Intermediates for Chemical and Allied Industries. It has four units at MIDC, Badlapur (East), District - Thane, Maharashtra. The company was originally incorporated as Omkar Speciality Chemicals on February 24, 2005 and took over business of the Proprietorship Firm Omkar Chemicals which was in operation since 1983 with Pravin S Herlekar as the Proprietor. The private limited

Omkar Speciality Chemicals is mainly engaged in the manufacture and sale of Speciality Chemicals and Intermediates for Chemical and Allied Industries. It has four units at MIDC, Badlapur (East), District - Thane, Maharashtra. The company was originally incorporated as Omkar Speciality Chemicals on February 24, 2005 and took over business of the Proprietorship Firm Omkar Chemicals which was in operation since 1983 with Pravin S Herlekar as the Proprietor. The private limited company was converted into a public limited company on March 18, 2010.

It manufactures a range of Organic, Inorganic and Organo Inorganic Intermediates. The Inorganic Intermediates include Molybdenum derivatives, Selenium derivatives, Iodine derivatives, Cobalt derivatives, Bismuth & Tungsten derivatives and the organic intermediates include Tartaric acid derivatives and other intermediates. These products find applications in various industries like Pharmaceutical Industry, Chemical Industry, Glass Industry, Cosmetics, Ceramic Pigments and Cattle & Poultry Feeds.  The company exports its products to Europe, Canada, Asia, South America and Australia. The total exports constituted 8.69%, 12.35% and 7.97% of gross sales during FY 2008, FY 2009 and FY 2010 respectively. The chemical maker’s association with leading organizations in India and abroad has enabled it to broaden the business, to expand the existing product range and to develop new molecules as per the specific demands of its valued customers.

Omkar Speciality Chemicals has basic research capabilities and has recently acquired Rishichem Research as a wholly-owned subsidiary which is expected to provide a total R&D back-up to the company for all its future expansion and diversification programmes.

Plant and Machinery

The company’s manufacturing facilities have plant and machinery, which includes stainless steel reactors, glass lined reactors, stainless steel centrifuges, glassline centrifuges, nutsche filters, agitated filter nutsches, tray dryers, fluid bed dryers, blenders and support equipments like boilers, chilling plants, cooling tower, etc.

UnitProducts manufacturedExisting sanctioned load
Unit No.1   Iodine, Selenium,Molybdenum compounds and other derivatives73 KW (LT)
Unit No.2Iodine, Selenium,Molybdenum compounds and other derivatives377 KW (HT)
Unit No.3  Selenium Sulphide286 KW (HT)
Unit No.4  Warehouse and proposed manufacturing unit15 KW (LT)
Total751 KW

Product Portfolio

The company manufactures a range of organic, inorganic and organo inorganic intermediates. Organic intermediates are compounds rich in carbon molecules. Inorganic intermediates are compounds rich in metallic molecules. Organo inorganic intermediates are combination of carbon and metal molecules. The various products manufactured by the company in various categories are as follows:

CategoryApplications
Inorganic intermediates
Molybdenum DerivativesElectroplating, Lubricant, Water treatment chemicals
Selenium DerivativesFlucloronide, Shampoo, Pharma Intermediates, Tinted float glass, Glass industry

Iodine Derivatives

Photographic chemicals, 2- Methoxyestradiol, Nylon tyre yarn, Binfloxacin, Zaleplon, Hexestrol, Etiroxate, Idoxuridine, Rizatriptan,Adapalene, Dabelotine, Fluticasone Propionate, Pharma Intermediates, Terfenadine, Metalaxyl, Lamivudine, Alprazolam

Cobalt Derivatives

Electroplating and synthetic fibres, Ceramic pigment, Refining industry, Silica gel, Ceramic industry, Batteries, Electroplating, Cattle and Poultry feeds

Bismuth DerivativesPharma Intermediates, Auto paints, Soft Ferrites, Electronic, Cosmetics, Pharma and Anti ulcer drug
Tungsten DerivativesPharma industry
Organic intermediates
Tartaric Acid DerivativesResolving agent
Other IntermediatesDolasetron Mesylate, Terbinafine, Pioglitazone, Roziglitazone, Azoxystrobin, Seldinafen, Pharma Intermediates
Organo inorganic intermediates

Idoxifene, Benodanil, Etofenamate, Closentel, Rafoxanide, Pharma Intermediates, OPC, Electronic, Lamivudine, Orlistat, Anti DiabiticDrug, Finasteride, Rimexolone, Montelukast, Cerivastatin Sodium, Tocapone, Fluconazole, Nebirolol, Lansoprazole, Rabeprazole

Milestones

  • 1983 - Formation of Omkar Chemicals with capacity of 6 MT per annum for manufacture of molybdenum derivatives
  • 2005 - The existing company takes over Omkar Chemicals. At the time of takeover, the installed capacity was 318 MT and the product range was cobalt, selenium & iodine derivatives in addition to molybdenum derivatives
  • 2006-07 - The company expands the total installed capacity to 325 MT
  • 2007-08 - The company further augments capacity to 375 MT
  • 2009 - The company sets up a new manufacturing facility at MIDC, Badlapur viz. Unit 2 with an installed capacity of 375 MT. Following setting up of this unit, its total installed capacity doubles to 750 MT.
  • Recently, Omkar Speciality Chemicals established a new manufacturing facility at B-34, MIDC, Badlapur, Thane, Maharashtra viz. Unit 3 with an installed capacity of 200 MT. With the set up of Unit 3, the company’s total installed capacity stands increased to 950 MT
  • 2010 - Omkar Speciality Chemicals becomes a public limited company
  • 2010 - The company acquires 99.82% stake in Rishichem Research and makes it wholly-owned subsidiary
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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