Indo Amines Ltd ( IAL - BSE CODE 524648) may be an unknown stock to many of you .Even this stock is not a widely discussed one , this company is a silent performer showing steady business growth for the past many years.IAL originally incorporated as Techno chemical industries in 1979 and later
changed its name to the present one.This Thane based company manufacturing
various types of Specialty,Fine and
Performance chemicals finding applications in Petroleum
industry,Agrochemicals,Pharmaceuticals ,Construction and Fertiliser.Company
operating three manufacturing facilities in India at Thane,Baroda and Mumbai.It
is one of the largest producers of fatty amines in India..Its turnover grow from Rs.85 Cr to Rs 200 Cr during 2008-1012
period.But the growth in bottom line was slow compared with top line growth. The
following points demanding a close look at the company now even if it is
trading at its 52 week high price. First one is , company’s plan to concentrate
in high margin products including some
new additions to its existing products list .Effect of this initiatives already
started reflecting in first quarter itself where its net profit improved 100 %
compared with last year same period.Second is ,promoters of the company now
subscribing 4300000 warrants at a price
of Rs.17/- and also merging some of their privately held companies into this
listed entity.These process will increase their stake in the listed company
from the current level of 56 % to near the maximum permissible level . Excluding this ,promoters already hiked their stake in recent past very aggressively through preferential allotments. (For details ,click HERE) Another point is ,In a recent filing to
BSE, (To read ,click HERE) company informed their decision to set up a new plant at Dhule, Maharastra
with a capital outlay of Rs.20 Cr .At present company having some debt in its balance sheet but promoters decision to pump more money through equity route will bring down the debt equity ratio going forward.Watching the trend of past few trading sessions ,I feel some kind of an accumulation is going on in
this stock and it is a stock worth keeping in our watch list and high risk investors may even add a small quantity with a long term view.This Rs.200 Cr turnover, dividend paying company is trading with a market cap of just Rs 28 Cr @ CMP Rs.29/-
Link to Company website HERE
