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Sanmar Ltd., included within the yr 1985, is a Small Cap firm (having a market cap of Rs 1187.55 Crore) working in Normal sector.
Chemplast Sanmar Ltd. key Merchandise/Income Segments embody Sale of Merchandise, Export Incentives, Scrap, Lease Leases and Different Companies for the yr ending 31-Mar-2021.
Financials
For the quarter ended 31-03-2022, the corporate reported a Consolidated Complete Revenue of Rs 1815.70 Crore, up 23.96 % from final quarter Complete Revenue of Rs 1464.73 Crore and up 34.45 % from final yr identical quarter Complete Revenue of Rs 1350.42 Crore. Firm reported internet revenue after tax of Rs 231.64 Crore in newest quarter.
Funding Rationale
Chemplast Sanmar’s (Chemplast) Q4FY22 spreads have been impacted by high-cost stock carried over from Q3FY22 and offered in its entirety in Q4FY22. This saved EBITDA flattish QoQ. Chemplast has offered most capability in FY22, and in FY23 it has solely 10% extra capability coming in S-PVC section. Giant growth in paste-PVC and customized manufacturing will start solely in FY24. Firm plans to do extra capex with good scope for giant FCF technology and has not introduced dividend in FY22 pending evaluation of fund requirement. It expects large capability announcement in S-PVC the place the corporate already has environmental clearance to double its capability to 600kpta. This may present the much-required visibility on quantity development whereas extra capex in customized manufacturing might be welcome. The brokerage has tweaked estimates marginally, however lower goal value to Rs800 (from Rs910) because it cuts the P/E a number of to 18x (from 20x) on near-term low quantity development.
Promoter/FII Holdings
Promoters held 54.99 per cent stake within the firm as of 31-Mar-2022, whereas FIIs owned 10.3 per cent, DIIs 25.21 per cent.
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