This co. was recommended technically on 24/03/2017 Click Here , and stop loss was given @ 18, The stock has maintained stop loss and never closed below that till today.
The co. is in good business and its monopoly in making lead free pipe. You can view what CNBC TV 18 interviewed with analyst :
The co. is in good business and its monopoly in making lead free pipe. You can view what CNBC TV 18 interviewed with analyst :
Below is the verbatim transcript of Ravi
Kataria's interview to Prashant Nair, and Ekta Batra on CNBC-TV18.
Prashant: What stocks are on top of your mind?
A: Vikas Ecotech is a specialty chemicals player and the company provides the compounds and specialty chemicals which are lead free. It drives majority of its revenue from organotin stabilisers, recycled compounds -- organotin is lead free which is supplied to pipes, manufacturing, engineering kind of industries. This is US FDA approved product, so, that is why it has gained a lot growth in exports over the past say two years’ time. Worldwide we are seeing the regulation being put in place for the usage of chemicals which are toxin free. As a result, we are expecting in India also the government to come up with a regulation for pipes manufacturing which can be lead free.
If that happens as we envisage in over the one or two years’ timeframe, there will be a serious run for the stock because it is one of the few players globally which manufactures such commodity. Its space in recycled compounds, it manufactures certain products from waste cooking oil, it has tied up with Nafigate Corporation in Czech Republic for supplying of technology and when you see these two-three spaces, they have grown from nothing to almost like Rs 50-80 crore in their topline in just last two years’ time.
We are estimating doubling of the topline over the next two years because of one, operating capacity expansion to 50,000 metric tonne in their plant in Gujarat, says opening up in Noida. So, they will see a tickering of their operating margins. There are just four or five which have got this kind of technology in place or the chemicals manufactured. PMC is one, Galata Chemicals is one, couple of players from China, and if we see, their operations in India are limited and cost constraints if we consider, the multiple parameters, the Indian players would certainly go for something like Vikas Ecotech for their long term supplies. As a result, we saw Jayant Chheda also putting up increasing stake from 2 percent to 10 percent in the stock.
Ekta: Your target price is Rs 49 by when?
A: By FY19. It is Rs 27 by FY18 because their Gujarat plant is expected to commission by end of FY18. So, the rolling over of the benefits will come in FY19.
Prashant: What stocks are on top of your mind?
A: Vikas Ecotech is a specialty chemicals player and the company provides the compounds and specialty chemicals which are lead free. It drives majority of its revenue from organotin stabilisers, recycled compounds -- organotin is lead free which is supplied to pipes, manufacturing, engineering kind of industries. This is US FDA approved product, so, that is why it has gained a lot growth in exports over the past say two years’ time. Worldwide we are seeing the regulation being put in place for the usage of chemicals which are toxin free. As a result, we are expecting in India also the government to come up with a regulation for pipes manufacturing which can be lead free.
If that happens as we envisage in over the one or two years’ timeframe, there will be a serious run for the stock because it is one of the few players globally which manufactures such commodity. Its space in recycled compounds, it manufactures certain products from waste cooking oil, it has tied up with Nafigate Corporation in Czech Republic for supplying of technology and when you see these two-three spaces, they have grown from nothing to almost like Rs 50-80 crore in their topline in just last two years’ time.
We are estimating doubling of the topline over the next two years because of one, operating capacity expansion to 50,000 metric tonne in their plant in Gujarat, says opening up in Noida. So, they will see a tickering of their operating margins. There are just four or five which have got this kind of technology in place or the chemicals manufactured. PMC is one, Galata Chemicals is one, couple of players from China, and if we see, their operations in India are limited and cost constraints if we consider, the multiple parameters, the Indian players would certainly go for something like Vikas Ecotech for their long term supplies. As a result, we saw Jayant Chheda also putting up increasing stake from 2 percent to 10 percent in the stock.
Ekta: Your target price is Rs 49 by when?
A: By FY19. It is Rs 27 by FY18 because their Gujarat plant is expected to commission by end of FY18. So, the rolling over of the benefits will come in FY19.
Once the our government publish notification to ban lead in making pipe and food packing items, the co. will have sky limit opportunity.
The stock is worth to hold in portfolio only medium to long term view @ price of 21- 21.25.
Spice exports up by 8% in 2017-18
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