Vidhi
Dyestuffs was posted on this blog on 18th May 2015 when it was
trading @21/- and touched 53/- on 10.08.2015. On 12.08.2015 company has announced
results for the quarter ended 30th June 2015.
Company
has shown wonderful performance in Q1. Comparison of key figures is as under:
(Rs in crores)
Particulars
|
Comparative Q1 Figures
|
||
FY
|
Q1
2014-15
Actual
|
Q1
2015-16
Actual
|
Growth
|
Sales
|
40.26
|
59.05
|
47.23%
|
Net Profit
|
2.44
|
3.80
|
55.74%
|
Net Profit
Margin
|
6.06%
|
6.44%
|
0.38%
|
Capital
|
5.00
|
5.00
|
-
|
Face Value
(Rs)
|
1
|
1
|
-
|
EPS (Rs)
|
0.49
|
0.76
|
55.10%
|
Dividend
|
0
|
20%
|
-
|
We
assume that company will maintain same growth momentum in remaining three
quarters in FY 2015-16. Company has increased the manufacturing capacity and commercial
production since started. Therefore, results of coming quarters will be better
than Q1. Comparison Audited figures for FY 2014-15 and projected figures for FY
2015-16 is as under: (Rs in crores)
Particulars
|
Projected Comparative Figures
|
||
FY
|
2014-15
Actual
|
2015-16
(Estimated)
|
Growth
|
Sales
|
188.77
|
300.00
|
58.92%
|
Net Profit
|
12.42
|
20.00
|
61.03%
|
Net Profit
Margin
|
6.58%
|
6.67%
|
0.09%
|
Capital
|
5.00
|
5.00
|
-
|
Face Value
(Rs)
|
1
|
1
|
-
|
EPS (Rs)
|
2.48
|
4.00
|
61.29%
|
Dividend
|
50%
|
80%
|
60%
|
POSITIVE
DEVELOPMENTS
a) On 05.08.2015, Mr. Nikhil Vora has bought 4.97 lacs
shares @47.40. At present he is CEO of Sixth- Sense-Ventures, which has got
multiplier returns on earlier -14- investment made by it. Earlier, Mr. Nikhil
Vora was Managing Directors and Head of Research at IDFC Securities. He was
voted as number one analyst by Asia Money polls in 2012.
b) On 13.08.2015, Firstcall Research has published research
report on Vidhi Dyestuffs and given buy call for a target of Rs.52/-. However,
stock has already touched Rs.53/- on 10.08.2015.
c) Company has announced Vision for 2020, with Q1 results
and targeting 20% of global capacities with EBITDA margin of 20% by moving in
to value add segments.
d)
Earlier the company was announcing
interim dividend @25% on half yearly basis. This time company has announced
interim dividend @20% after Q1 results. Last year company has announced 20% of
EPS (Rs.2.48) as dividend. This year it is expected that company will announce
20% interim dividend for each quarter and total dividend will be 80%, which
will be 20% of estimated EPS (Rs4.00) in FY 2015-16.
In view of positive developments
stated above, I believe that stock will trade in three digits in coming months.
Disclaimer: I am not a research analyst.
Please take own decision after read the results, annual reports.
