Thread by @SkCapitalist

#Shree Pushkar Chemicals & Fertilizers
Shree Pushkar #Chemicals & #Fertilizers Ltd is engaged in the business of manufacturing and trading of chemicals, #dyes and dyes intermediate, cattle feeds, fertilizers and soil conditioner.

Let’s have a look at the company’s business as well how well they have diversified. They have a well diversified business which is growing on all fronts.

Here is a breakdown of their #Fertilizer products as well.

Coming to #CapacityUtilisation, they have utilization as below:
1.#Potassium Sulphate: 27% Capacity.
2.#NPK (Nitrogen Phosphate Potash): 12% Capacity
3.#Dyes Intermediates: 69% Capacity
4.#Chemicals: 28% Capacity
5.Single Super phosphate: 33% Capacity

Details of business & #Integration

The company has a diversified product line hence it has multiple competitors. #Promotors have a healthy 65.25% Stake with almost no debt. Best part which I personally look for is Retail Shareholding is reducing constantly from 32% in 2016 to 27.44% today.

To get an idea about promotor’s vision & understanding please have a look at the below interview link.
smefutures.com/india-chemical…

With #Dyecol the company has successfully created a brand and differentiated itself from other players in the market. I was unable to find any bad reviews for the #Dyecol brand.

Also, since #China is taking a back step from the #chemical space this is a very positive development for Chemical players. The company is proud to be a Zero #waste company with multiple certifications which highlights the good working policies.

The company has evolved itself and has a clear roadmap for the #Future. It has expanded both in Chemicals segment & Fertiliser segment with #Acquision of Kisan Phosphate & now Madhya bharat Phosphates.

The decline in sales happened due to maintenance of one of their units. Another good sign of the company is that whatever acquisitions or expansions the company has done, it’s through internal accruals.

Company has stable EBITA #Margins of 14-16% and growth parameters are mentioned below. I expect the company to perform better once complete capacities are back online. Plus the #rural growth will be good going ahead which bodes well for the company.

From working perspective I could not find red flags, receivables are not very high even if it’s a small company. Cash flow from main business is positive in last 7 years. Inventory turnover has improved the only downside was debtor days have increased to 72 days which is ok.

Company has also started paying Dividends. ROCE 19.47%

Coming to #Valuations. 52 Week high / low is 143.5 – 56.30, Stock P/E is 9.37 & P/B is 0.99. Average P/E has also been 15 (5 Years Historical). PEG Ratio is 0.33 which means growth at attractive valuation.

Lifetime high is 317.28. Market cap = 1.2 years of sales (Approx.) Risk reward looks favourable.
I would be entering the same at around 95 with expectation of 30-40% Gains in a year. Can become a mutibagger if macro conditions remain the same over a period of 5-10 years.

Please add on the above details if you can. Please do your own study before taking any action.

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Guys please let me know if there is any interesting company to look into. Would share my viewpoints for the same. #Sensex #Nifty