Stock Name : CHEMCON SPECIALITY CHEMICALS Ltd                                  Buy : 433         Mar 17, 2021
Stopless/Horizon : 380 Target : 501

Overview: Chemcon Speciality Chemicals limited was incorporated in 1988. The company is involved in manufacture of Pharmaceutical intermediates and Oilfield Chemicals.

About the company: Chemcon Speciality Chemicals limited is based in Vadodara, Gujarat. The company has been manufacturing specialty chemical for more than three decades and has established itself as a reliable supplier of specialty chemicals, these products are used in end user industries such as Pharmaceutical, oil exploration and refining.

CSCL derives 25-30% of its revenue from exports, the company exports to following 11 countries,USA, Russia, China, Spain, Japan, Germany, UAE, Thailand, Malaysia, South Korea and Serbia and hence exposed volatility in foreign exchange rates.
Chemcon Speciality Chemicals is the only manufacturer of HMDS in India and was the third largest manufacturer of HMDS worldwide in terms of production (2019). The company was the largest manufacturer of CMIC in India and the second largest manufacturer of CMIC worldwide (in terms of production and capacity in calendar year 2019). In 2019, CSCL was the only manufacturer of Zinc Bromide and the largest manufacturer of Calcium Bromide in India.

CSCL has manufacturing facility in Savile District, Gujarat. The company plans to set up two more plants for the manufacture of pharma chemicals (capex of Rs 41.1 crore), which would increase its capacity from 375KL to 626KL (operational by FY22 end). CSCL’s key customers (pharmaceutical chemicals) include Hetero Labs, Laurus Labs, Aurobindo Pharma and IndSwift Laboratories.The company made an IPO in September 2020. It offered a fresh issue of equity shares, aggregating up to Rs 165 crore and offer for sale of up to 45,00,000 equity shares. The company plans to raise Rs 318 crore from this.

Management: Mr. Kamal Kumar Aggarwal is the Chairman & Managing Director of the company.
Shareholding pattern:
 Promoter: 74.5%
 MF: 3.3%
 FII: 0.1%
 Other Institutions: 0.6%
 Public: 21.5%
Sales Report: On February 2021, the company announced its un-audited financial results for the quarter and nine months ended on December 31st, 2020. In that report, Revenue Stood at Rs 64.8 Crore (growth of 16.3% on YoY basis), EBITDA at Rs 22.8 Crore (growth of 70.4% on YoY basis) and PAT at Rs 16.5 Crore (growth of 77.5% on YoY basis).

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