VIDHI DYESTUFFS MANUFACTURING LTD (BSE CODE- 531717)
THE NEXT MULTI BAGGER
Vidhi Dyestuff is a manufacturer
of edible food colours used in Pizza, Cold drinks and in other food items. Other
listed companies are in this segment are Camlin Fine Sciences and ADI Finechem.
Now increasing trend of people choice of Pizza, Cold drinks, Ketchups and
eating at Hotels raised the demand of edible food colours.
Comparative position of these three companies is as under: (Amt in Crores)
Particulars
|
Camlin
Fine Sciences
|
ADI
Finechem
|
Vidhi
Dyestuffs
(FY
2014-15 Results Scheduled On 30.05.15)
|
||
FY
|
2014-15
|
2014-15
|
2013-14
|
2014-15
(
9 months)
|
2014-15
(Estimated)
|
Sales
|
440.24
|
150.62
|
142.77
|
134.09
|
185
|
Net Profit
|
25.82
|
13.69
|
5.98
|
8.70
|
12.75
|
Net Profit
Margin
|
5.9%
|
9.08%
|
4.19%
|
6.49%
|
6.89%
|
Capital
|
9.59
|
13.79
|
5.00
|
5.00
|
5.00
|
Face Value
(Rs)
|
1
|
10
|
1
|
-
|
1
|
EPS
|
2.70
|
9.92
|
1.19
|
1.74
|
2.55
|
Dividend
|
45%
|
25%
|
40%
|
-
|
50%
|
Share
Price
|
95
|
290
|
-
|
-
|
21
|
Current PE
Ratio
|
35
|
29
|
-
|
-
|
8.24 |
Projected EPS for FY 2015-16 is Rs.3/- and it is a strong competitor of Camlin Fine Sciences and ADI Finechem. In view of low capital base and improving performance over past year Vidhi Dyestuff may emerge as multi-bagger stock. Trading PE valuation comparative to its peers around 30 may push share price 3x30=90 in FY 2015-16.
Disclaimer: I am not a research analyst.
Please take own decision after read the results, annual reports.
