Angel Broking: Chemcon Speciality Chemicals IPO - Outlook And Valuation

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Angel Broking Report.Chemcon Speciality Chemicals Ltd. is a manufacturer of specialised chemicals, such as HMDS (hexamethyldisilazane) and CMIC (Chloromethyl Isopropyl Carbonate) which are predominantly used in the pharmaceuticals industry and inorganic bromides, namely Calcium Bromide, Zinc Bromide and Sodium Bromide, which are predominantly used as completion fluids in the oilfields industry.In FY 2020, approximately 40% of their revenue came from export (including deemed exports).For FY2020, revenue contribution from pharmaceutical chemicals and Oilwell Completion Chemicals was 63.8% and 33.5% respectively.Outlook and Valuation - At the upper end of the price band, Company demands price to earning multiple of 22.1 times on FY20 basis.None of the listed chemical companies has the same business as Chemcon. Its specialty chemical peers such as Neogen Chemicals Ltd., Paushak Ltd., Atul Ltd. and Aarti Industries Ltd. are currently trading at price to earning multiples of 57.0 times, 37.6 times, 29.6 times and 35.6 times respectively on FY20 earning per share.Company return ratios and margins are better than most of its peers. We believe Company is clearly undervalued compared to its peers; a lot of value is left in the table. .Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Angel Broking: Chemcon Speciality Chemicals IPO - Outlook And Valuation

Angel Broking: Chemcon Speciality Chemicals IPO - Outlook And Valuation

Choose a plan