This chemical company saw its price appreciating by 20 per cent; here's why
Company got environmental clearance for the expansion of the synthetic organic chemical manufacturing plant.
On August 18, the stock price of Indo Amines experienced a significant uptick, rising 19.24 per cent to Rs 119.10. The company is a leading manufacturer of products whose end uses are agrochemicals, pharmaceuticals, high-performance polymers, paints, pigments, printing inks, rubber chemicals, additives, surfactants, dyes, flavours and fragrances, home and personal care applications, etc. Indo Amines is a significant maker of speciality chemicals.
The main reason driving such a strong move is that the company got environmental clearance for the expansion of the synthetic organic chemical manufacturing plant situated at Dhule, Maharashtra. The company has upgraded and expanded its manufacturing unit into Zero Liquid Discharge Units (ZLD) and also has put in place various processes to control/limit the generation of effluents and improve the treatment of the same to gain cost and production efficiency.
The most recent June quarter's sales total Rs 2582 crore, up 45.85 per cent over the comparable period last year. Operating profit increased by 15.80 per cent over the June quarter of the prior year to Rs 203.6 crore. The profit after tax exhibits remarkable quarter-on-quarter growth of 30.51 per cent and YOY growth of 29.74 per cent. Over 50 per cent of the company's production is derived from export revenue.
Indo Amines has solid foundations and exhibits rising performance ratios and profit margins. Speciality chemical sales, followed by agrochemical sales and performance chemical sales, account for the majority of the company's revenue. Various manufacturing and pharma industries receive their raw materials from Indo Amines. Emulsifiers have been created by Indo Amines to produce stable emulsions that can be used in a variety of industries, such as agrochemicals and the petroleum industry.
The speciality chemicals market reached USD 805 billion in 2019 after expanding at a 5.7 per cent CAGR over the previous five years. It is predicted to increase at a 6.4 per cent annual rate over the following five years, reaching USD 1.2 trillion by 2025. The production of chemicals has significantly shifted away from Europe and North America and toward Asia over the last few decades.