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Resonance Specialties Ltd. Stock Analysis

Small Cap
Evaluated by 140 users | BSE: 524218 | NSE: |
Chemicals
Resonance Specialties incorporated in 1989 is a pioneer in Pyridine chemistry and one of the few manufacturers of the product in the world. The company, formerly known as Armour Polymers Limited, was the first in India to manufacture Pyridines. Resonance is also one of the largest...

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'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 4.15%-0.26%3.29%7.59%2.15%6.4%4.4%-1.73%12.7%22.62%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 28.635.639.645.33838.934.23640.354.9
Y-o-Y Gr. Rt.-24.5%11.1%14.5%-16.1%2.4%-12.2%5.2%12%36.3%
Adjusted EPS (Rs.) 0.53-0.440.241.240.11.050.76-0.742.65.37
Y-o-Y Gr. Rt.--183%NA416.7%-91.9%950%-27.6%-197.4%NA106.5%
Book Value per Share (Rs.) 1312.5312.9313.2313.7414.7715.8815.2718.0521.57
Adjusted Net Profit 0.6-0.50.31.40.11.20.9-0.936.2
Net Op. Cash Flow (Rs. Cr.) 2.50.60.81.81.13.20.62.15.31.4
Debt to Cash Flow from Ops 1.186.344.361.922.810.597.281.5900
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.
Resonance Specialties Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 7.5%7.6%17.1%36.3%
Adjusted EPS 29.3%121.8%91.9%106.5%
Book Value per Share 5.89.410.819.5
Share Price 24.5% 29.1% 41.1% 157.4%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 2.83-2.411.316.850.575.483.78-3.6312.0621.75
Operating Profit Margin (%) 9.672.615.466.873.298.145.931.811.9914.15
Net Profit Margin (%) 2.13-1.440.693.170.323.112.58-2.387.4511.29
Debt to Equity 0.20.240.230.220.20.110.220.1900
Working Capital Days 196146133127169163204212171128
Cash Conversion Cycle 947477739683104866355
Entity Percentage Holding
Promoters 8.07%
Institutions 0.07%
Non-Institutions 91.86%
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.

The 5-year analysis of Resonance Specialties Ltd.'s performance infers:

Resonance Specialties Ltd. earnings have grown by 121.8%, whereas share price has appreciated 29.1% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Resonance Specialties Ltd. share prices over the last 10 years. Here is what we found out:

Resonance Specialties Ltd. share price has appreciated 18.4% annually over the past ten years.

Resonance Specialties incorporated in 1989 is a pioneer in Pyridine chemistry and one of the few manufacturers of the product in the world. The company, formerly known as Armour Polymers Limited, was the first in India to manufacture Pyridines. Resonance is also one of the largest manufacturers of Lutidines in the world.Despite the fact that these technologies are available only with a select few companies worldwide, Resonance was able to innovate and commercialise production with its own

Resonance Specialties incorporated in 1989 is a pioneer in Pyridine chemistry and one of the few manufacturers of the product in the world. The company, formerly known as Armour Polymers Limited, was the first in India to manufacture Pyridines. Resonance is also one of the largest manufacturers of Lutidines in the world.Despite the fact that these technologies are available only with a select few companies worldwide, Resonance was able to innovate and commercialise production with its own technology.

The company is promoted by Dr Atma. B. Gupta, a technocrat with a doctorate from the University of New York, and several years of post doctorate research in USA.

The company produces a range of value added products and continues to be the largest manufacturer and exporter of products like Alpha Picolinic acid and Dipicolinic acid. Resonance has exclusive supply arrangements with global industry leaders.

In 1994, just two years after the commissioning of the Pyridine and Picoline plants, the company repeated its pioneering feat. It became the first company in India to manufacture Cyanopyridines. This successful effort brought company recognition from the government of India for technological excellence. Resonance is also the first in India to manufacture various Collidines. True to its ethos, products manufactured by the company are comparable to the world’s best. The company employs green manufacturing to minimise its ecological impact and is able to deliver products that meet and surpass customer expectations and standards. Many of their innovative processes improve the yield; enhance the efficiency of manufacturing as well as the quality of the product.

Resonance products are exported to many countries worldwide through their supply agreements with many multinationals as well as through direct exports.In the company, quality is a way of life and it adhere to a stringent regimen to ensure the quality of their products.Every raw material is thoroughly tested and quality is monitored through the entire manufacturing process up to the final packaging.

Product range of the company includes:

  • Pyridines
  • Picolines
  • Cyanopyridines
  • Lutidines
  • Collidines
  • Active Pharmaceutical Ingredients (APIs)
  • Drug Intermediates

These products cater to the requirements of various industries.

  • Pyridine is a versatile chemical used in the manufacture of  agrochemicals,pharmaceuticals & bulk drugs, dyes, rubber chemicals, etc
  • Alpha Picoline is used in the Vinyl Latex Rubber.
  • Beta Picoline is used in the manufacture of Vitamin B3.
  • Gamma Picoline is used in the pharmaceutical industry for the manufacture of an anti-tuberculosis drug, Isoniazid

Resonance products are exported to many countries worldwide through its supply agreements with many multinationals as well as through direct exports.

Achievements/ recognition

The promoter of the company is the proud recipient of the Government of India award for technological excellence when he set up the first Cyanopyridines plant in India.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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