Wednesday, November 27, 2013

SWAP 1/3 OF RHODIA SPECIALTY CHEMICALS WITH SUNSHIELD CHEMICALS.















I have recommended a BUY on Rhodia Specialty Chemicals ( Formerly Albright and Wilson) @ Rs.185 ( Recommendation Link HERE) .This stock yesterday hits its lifetime high @ Rs.711 and closed around Rs.680. Solvay SA ,the multinational Specialty Chemical giant is the  ultimate parent of Rhodia  which came out with a de-listing offer for Rhodia Specialty Chemicals.Floor price for the reverse book building is indicated as Rs.442.64. One should wait and see whether the company will accept a substantially higher discovered price  is if it happens. Recommending to sell one third of your holdings in Rhodia which will cover the entire cost price at Current market rate. Using that amount one can take exposure in the only other listed Solvay entity  in India ,ie, Sunshield Chemicals @ CMP Rs.62 even if this stock is also traded in Periodic Call Auction as in the case of Rhodia .
 
SUNSHIELD CHEMICALS LTD
   

                                                                  Sunshield - taken over by Solvay in 2012- , also operating in Specialty Chemical segment .Under the new management , company  reported turnaround numbers in latest September quarter.Turnover of the company also showing good progress even in this tough business environment.Company now upgrading all its systems,production facilities ..etc into Solvy's standard.About 50% of Sunshield's income coming from exports.With Solvay's vast marketing network all around the word and revival in Europe and US  ,Sunshield is expected to perform even better in coming years.In addition to a possible improvement in business ,there is every chance for a de-listing offer for Sunshield in future. Stock traded in BSE only with  code 530845 @ Rs.62

 Link to Solvay HERE

 Link to Sunshield HERE

 Link to latest Annual Report HERE


Posted by VALUEPICK at 5:23 AM

26 comments :

  1. AnonymousNovember 27, 2013 at 1:55 PM

    Dear sir,

    What will be the fate of wockhardt, hereafter sir..

    ReplyDelete
    Replies
    1. VALUEPICKNovember 27, 2013 at 9:16 PM

      The USFDA decision was not an unexpected one.But today's price movement was really surprising on the positive side. Frankly speaking , I expected a cut of minimum 20 % on the day of such a decision ,if it happens.But it came down less than 10 % .I am unable to explain the reason. May be because of low floating stock of the company ( promoters holding 75 % stake) or the accumulation of some strong hands other than retail investors. As per the details submitted to exchange ,for the past few days promoters bought substantial shares from open market .Not sure about the reason of their optimism even when the USFDA decision was pending.May be they are expecting an earlier settlement of this issue ( in a latest interaction ,management indicated that all their plants will be ready to comply with CGMP by January 2014 and they will request of another inspection thereafter) . Anyway ,this decision will surely impact the business in short term.One more point - the next trigger may be positive for Wockhardt in the form of a thumps up from USFDA for its Shendra facility .Chances are very high for approval and on this decision company planning to shift part of its production from Waluj facility - which earlier banned by USFDA - to Shendra.

      Delete
  2. Praveen VeliyamNovember 27, 2013 at 6:00 PM

    Sir may i know your view on Firstsource Solutions for long term at CMP ?

    ReplyDelete
  3. AnonymousNovember 27, 2013 at 6:15 PM

    What is your View on ATUL AUTO at CMP

    ReplyDelete
    Replies
    1. VALUEPICKNovember 27, 2013 at 9:25 PM

      This stock recommended @ Rs.71 .Thereafter it gave 1:2 bonus and 1:4 rights .Still it is quoting @ Rs.293 - already turned as a multibagger and a HOLD for me @ CMP.

      Old link below

      http://value-picks.blogspot.in/2010/06/atul-auto-shining-in-crowd.html

      Delete
  4. Jack.November 27, 2013 at 9:27 PM

    Hi, Value Pick. Please share your views on Sintex.

    ReplyDelete
    Replies
    1. VALUEPICKNovember 28, 2013 at 8:43 PM

      Already high debt ,again planning to raise further debt of more than Rs.1000 Cr for the expansion of textile division. I am not sure how they manage all these even the brand is a good one.

      Delete
  5. AnonymousNovember 28, 2013 at 1:32 AM

    Thanks for the excellent blog and your recommendations.

    I am a big fan of great management and value creators for share holders. I am looking at two companies Sun Pharma and Himatsingka. Please let me know based on CMP, what you think?

    Thanks.

    ReplyDelete
    Replies
    1. VALUEPICKNovember 28, 2013 at 8:44 PM

      One can look into Sun in a correction ,not tracking the other.

      Delete
  6. atulNovember 28, 2013 at 6:11 AM

    Sir,
    you old receo Gokaldas Export is hitting upper circuits and I am holding from lower levels.
    Need your guidance on profit booking or holding.

    thank you for the recomendatin sir

    ReplyDelete
  7. AnonymousNovember 28, 2013 at 9:36 AM

    sir , seeking your sincere views on these auto companies - whic on eis best pick considering re-rating of sector in coming days
    1. Force motors
    2. SML Isuju
    3. Piaggeo
    4. Eicher motors

    pls. reply sir.

    ReplyDelete
    Replies
    1. VALUEPICKNovember 28, 2013 at 8:46 PM

      SML already recommended

      Piaggio not listed in Indian stock market

      Not tracking the rest.

      Delete
  8. AnonymousNovember 28, 2013 at 10:24 AM

    sir i m stuck in orient bell and mangalam cement from 99 and 180.. shall i avg them at cmp. please advice..

    ReplyDelete
    Replies
    1. VALUEPICKNovember 28, 2013 at 8:47 PM

      As you are aware ,both are related with construction activities ,which is not in a good shape at present .Hope worst is over but some long term wait may needed for significant recovery.

      Delete
  9. khannaNovember 28, 2013 at 11:06 AM

    Dear sir plese give the update on delisting Ahlcon Parenterals
    B Braun will acquire 1,872,039 equity shares from the shareholders of Ahlcon Parenterals at a price of R460 per share.

    ReplyDelete
  10. Rajesh PatelNovember 28, 2013 at 12:13 PM

    Dear Sir,

    Need your views on INDRAPRASTH MEDICAL CORPORATION

    ReplyDelete
  11. VALUEPICKNovember 28, 2013 at 8:52 PM

    Scalability of business is an issue due to 26 % state govt stake . There may be a conflict of interest from the part of Apollo group ( the other promoter) since they are also running hospital chain.

    ReplyDelete
  12. ವೀರೇಂದ್ರ ಕುಮಾರ್ . ಎ. ಎಸ್November 29, 2013 at 5:55 AM

    Thanks for the excellent blog and your recommendations.

    I am a big fan of great management and value creators for share holders. I am looking at two companies mayur uniquoter and sutlej textile. Please let me know based on CMP, what you think?

    Thanks.

    ReplyDelete
  13. vishal mindaNovember 29, 2013 at 10:54 AM

    Thanks Sir for beautiful recommendation of SUNSHIELD chemicals ltd company has also rec. a sum of app. 52 cr. Rs from its parent fro expansion /modernization of existing capacities which will be fruit full for existing shareholders.

    ReplyDelete
    Replies
    1. AnonymousNovember 29, 2013 at 7:31 PM

      Where have they announced receiving Rs 52 crore from the parent?

      Delete
  14. UnknownNovember 30, 2013 at 12:33 AM

    Sir, excellent blog, maybe a search feature would decrease duplication and give you more time. What do you think about ITC sir, I bought it at 328 and it seems to be straining at lower levels..

    ReplyDelete
    Replies
    1. VALUEPICKNovember 30, 2013 at 6:50 AM

      You can use the search option at the top left corner for finding posting on a particular company,not comments.

      ITC is not a company to lok on a daily basis ,take it as an asset and keep with.

      Delete
  15. UnknownDecember 10, 2013 at 8:33 PM

    should i invest in sunshield chemicals

    ReplyDelete

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