CAMPHOR & ALLIED PRODUCTS LTD - JOINING HAND WITH A WORLD LEADER
Not only the status of India’s largest aroma chemicals manufacturer but its new relation with AganAroma & Fine Chemicals which is a subsidiary of Makhteshim Agan Group -an affiliate ofChemChina - ( Chem China is the largest Chinese chemical company ) creating interest in CAPL . As per the agreement with Agan ,high margin products produced at company’s new plant located at Vadodara will be marketed by Agan worldwide . Agan will also provide technology expertise to camphor. Company claiming this is the world’s most advanced plant for manufacturing high margin Musk and related products.Last year company started commercial production from this facility and the recent results of the company speaking for itself.
Now company is planning to give priority to reduce its debt .Last year company sold a non core land asset to limit the dependency of debt for setting up the new plant.Last year company also skipped the dividend due to this reason .With robust performance in ongoing financial year ,let us hope the company will back to dividend list in this year.In the latest December quarter CAPL reported a turnover of Rs.77 Cr ( last year same period Rs.54 Cr) and net profit of Rs.8.20 ( Rs.4.5 Cr) .For the nine months of this FY ,CAPL reported a net profit of Rs.14.53 Cr and an EPS of Rs.28.30 .Now company completed major capex and result of the same started to flow .
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CAPL is in a niche segment backed with strong support of a world leader but a less researched company by market participants . With revival in western economies, scaling up the production capacity to full utilization level ( Currently around 75-80 % level) , reduction in debt using improving cash flow ,possibility for further expansion in relationship with Agan ..etc , company is expected to report even better numbers going forward.
