While the company’s reported earnings were below expectations

Bodal Chemicals to benefit from capacity expansion

canada goose outlet canada goose outlet miami canada Bodal Chemicals, the vertically integrated manufacturer of dyestuff, reported its Q1 FY18 earnings last week. While the company’s reported earnings were below expectations, the insights canada goose parka uk provided on canada goose premium outlet both forward and backward canada goose outlet sale integration official canada goose outlet were positive. canada goose outlet canada

canada canada goose outlet edmonton goose outlet shop The company is currently undergoing substantial capacity expansion and expect incremental revenue contribution from the new capacity from FY19. canada goose vest outlet The management has evinced interest in foraying into specialty chemical products, which is something worth watching for. The management mentioned that canada goose outlet online reviews there was buy canada goose uk a 15 day plant shut down in the main plant (Unit 7, Vadodara) on account of effluent treatment upgradation in the adjoining canal. canada goose outlet shop

canada goose outlet store uk EBITDA margins contracted canada goose outlet jackets by 85 bps YoY on account of higher inventories and increase in employee costs canada goose outlet black friday sale partially offset by lower raw material costs. In addition, upfront fixed costs from the ongoing expansion projects led to lower net profit canada goose outlet new york ( 6 percent YoY). canada goose outlet store uk

canada goose outlet online uk Sales for dyes intermediates impacted by destocking canada goose outlet online canada goose discount uk uk

canada goose outlet new york city In the quarter gone by, the company faced some GST led destocking particularly from its SME clients. Consequently, sales for dyes intermediates and basic chemicals were down by 8 9 percent. However, canada goose outlet in uk now the GST related transition at end clients are largely over. canada goose outlet new york city

canada goose outlet Enhanced dyestuff capacity by FY18 canada goose canada goose coats uk outlet

canada goose black friday sale Bodal had earlier guided to 24000 MT dyestuff capacity canada goose outlet locations in toronto expansion in 3 4 years with first phase of 8000 MT by end of FY18. The https://www.jacketstock.com company has now raised the expansion plan for first phase to 12000 MT citing product demand and GST related benefits. canada goose black friday sale

official canada goose outlet Additional production on dye intermediate “Vinyl Sulphone” to start by Q4’18 official canada goose outlet

canada goose outlet in usa The company is in the final stages of canada goose uk site the expansion of 4200 MT Vinyl Sulphone plant in canada goose outlet store montreal SPS processors (acquired in March 2017). Currently, it is facing a difficulty in procuring ethylene oxide feedstock from a petrochemical major which is expected to get resolved canada goose outlet in usa by the next quarter. By Q4 canada goose outlet london 2018, production of Vinyl Sulphone from the new plant is expected to canada goose outlet online store review commence. canada goose outlet in usa

canada goose outlet parka With the new capacity, company’s canada goose outlet uk sale production of Vinyl Sulphone would increase to 16000 MT making it amongst the largest manufacturer of canada goose outlet england the key dye intermediate in India. canada goose outlet parka

canada goose outlet sale Backward integration for Vinyl sulphone canada goose outlet sale

canada goose outlet uk sale In an effort towards backward integration, company mentioned that it is setting up a plant for the production of Thionil Chloride (36000 MT) which is a raw material for the Vinyl Sulphone. This should help in improving margins in the dyes intermediate business. Around 30 35 canada goose outlet legit canada goose outlet percent of production is expected to be used canada goose outlet store near me for captive consumption. canada goose outlet uk sale

canada goose outlet store Watch out for new product in specialty chemicals space canada goose outlet store

canada goose outlet jackets The management hinted that it is exploring opportunities in new specialty chemicals for which land has already been acquired canada goose outlet store uk in Dahej. Hence, this is transitory in nature and we expect sequentially higher production and end market demand. canada goose outlet jackets

canada goose factory outlet However, we have tweaked our estimates and revised down our projected financials, based canada goose sale uk on company’s guidance on capacity expansion and long term outlook (2020). canada goose factory outlet

canada goose outlet reviews We expect a sales CAGR of 17 percent canada goose jacket outlet store (2017 20E) and a margin upside of 30 bps (2017E 19E). canada goose outlet reviews

canada goose outlet uk Bodal witnessed a solid performance particularly at the bottom line in FY17 on account of China opportunity. However, such a performance may not necessary repeat itself in the near term. While we are going with a conservative earnings estimate (CAGR of 14 percent for FY17 20E), we do not canada goose outlet website legit rule out an upside to our estimates. This could be on account of ongoing vertical integration, improved product price outlook and the company’s investment in the areas canada goose outlet nyc of efficiency enhancement. canada goose outlet uk

canada goose jacket outlet Based on our revised estimates, Bodal trades at a multiple of 11.3x (2019E earnings) which is reasonable in our opinion. Company’s effort on multiple fronts is positive, in our opinion. Hence, we suggest to accumulate stock on further weakness canada goose jacket outlet.

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