Thread by @viveksingh2010

Ganesh Benzoplast
Company is leading independent Liquid Storage Tank (LST) provider, specialized in the storage and handling of liquid chemicals and oil products and has storage terminals at JNPT (Mumbai), Cochin and Goa.

https://twitter.com/viveksingh2010/status/1433347453881700357

GBL is also in the business of manufacturing of speciality chemicals, food preservatives and oil additives having two numbers of factories at MIDC Tarapur (Maharashtra).

GBL infra, The Infrastructure division of Ganesh Benzoplast Limited - with its headquarters in Mumbai, India - is the leading independent tank storage provider, specialized in the storage and handling of liquid chemicals, gasses and oil products.

LST Division facilities: Storage tanks at JNPT (Navi Mumbai), Cochin & Goa Terminals
Clients: Reliance Industries, BPCL, Jubliant Life Science, Jupiter Dye Chemical, Akry Organics, Frigorifico Allana, Smartchem Technologies

Chemical: Manufactures Benzoic Acid & its Derivatives like Sodium Benzoate with largest production plants of Sodium Benzoate and Benzoic Acid in India, Benzoplast a specialty plasticizer, industrial lubricant additives, engine oil additives and performance chemicals.

Specialty Chemicals : TBN Boosters, Octane Boosters, Defoamers,
Food Preservatives: Benzoic Acid, Sodium Benzoate and Benzoate Plasticizers
Lubricant Additives: Gear Oil Additives, Hydraulic Oil Additives, Greece Additives Manufacturing Facilities at MIDC, Tarapur

The company has recently acquired 86.5% of a company named ‘Stolt Rail Logistics Systems’ with benefits –
•Improves safety by reducing manual and truck handling,
•Improves efficiency by providing one stop logistic solution,
•Increases profit due to reduction in supply chain

They have created a subsidiary GBL clean which will deal in clean energy fuels viz. ethanol, ethyl alcohol, bioethanol, butanol, bio-alcohol, methanol and Isopropyl alcohol and other clean energy and biodiesel fuels, bio-oils and other agro-based products etc.

Financials: Very Strong
Market Cap 487 Cr. Stock P/E 24.8
ROCE 25.6 % ROE 13.8 %
Promoter holding 43.1 %
OPM 5Year 28.3 %
Profit Var 5Yrs 16.5 %
Sales growth 5Years 16.9 %

Positives:
1.Very High OPM
2.Robust ROCE
3.Very good profit and sales growth
4.Reduced debts, strong FCF and WC days
5.Leading LST providers, a MOAT
6.Demerging into separate chemical business which has been a less margin business for them

Negatives:
1.Demerger process delay
2.Volatile chemical business
3.Pending Morgan credit case legal issues in supreme court though they have favourable judgement from high court
4.No dividend despite cash rich

Demerger a huge trigger:
To improve focus on each of the two businesses separately, company is considering separating out them as GBL Infrastructure Ltd and GBL Chemicals Ltd and listing each of them, governed by different well defined leaderships.

This will enable the company to plan and strategies different businesses and game plans for sustainable growth. Chemicals business has uneven margins, a high working capital and low capacity utilization (as per inv ppt, they have only 70% utilization).

Hence separating out this business will enable better focus on Chemicals business and enhance the numbers of LST division.
Source- Investor PPT

Disc: I am a human and humans do mistakes..not a SEBI registered, one should study and should have risk taking capacity.

please dont ask Qs like how much capital should i invest? how long should i hold? targets etc..
if you have been following me for quite some time, you already know all such things, my targets, time frames etc. you can check my previous recomm visavis performance. I may fail also.

Happy investing

#Ganeshbenzoplast - annual report
happy ganesh chaturthi to all