Transpek Industry Ltd is a 45 year old company established
in Baroda by Shroff Group.It is one of the largest
producers and exporters of organic and inorganic chemicals
from India. Its products are used in industries like
Petrochemicals, Pharmaceuticals,Agrochemicals ,Dyes
and polymer.Company manufacturing more than 50
products used in these industries.Out of the total sales,
close to 60% income derived from exports and balance
from domestic sales. Transpek has a good research division
too for inventing new products.In last financial year
performance of the company was severely affected by
foreign exchange loss on derivative
contracts which the company entered to hedge the risk.
Now after the stabilizing of exchange rate and improvement
in demand of company’s various products ,it is expected to
perform better in this year. One can BUY for decent return
in medium term at CMP of Rs.100/-
Thanks for good work of bringing out hidden zems for the benefit of retail investor. I happened to see your blog recently and following it on daily basis because of its unbiased content. Comming to Transpek, the company has posted poor results in 09-10 and they are before accounting the hedging losses. If these losses are accounted they would have ended up in losses. Not following the Accounting Standards and merely disclosing the facts in the notes is not a sign of good management. Another issue is that the holding of the promoters is very low at about 30%.
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