NGL Finechem Ltd.

NGL Finechem Ltd. 
cmp :- 455
CODE - 524774

COMPANY OVERVIEW :-

• NGL Fine-Chem Ltd is a manufacturer of pharmaceuticals and intermediates for usage in veterinary and human health.

• Manufacture APIs and Finished Formulations for usage in Human & Veterinary health.

• Have over 30 years experience in manufacturing and we cater to various multinational companies to manufacture high quality products with reliability and flexibility.

• Core expertise in multi stage organic synthesis of APIs and Fine Chemicals helps us support customers with unique and challenging manufacturing requirements.

• Export to over 35 countries globally and all our products are supported with Drug Master Files. Operates in 3 cGMP facilities around mumbai.  

• These plants have been designed to meet the requirements of Drug regulatory agencies and are capable of a wide range of reaction capabilities.

• Company is more focused into veterinary APIs. Though they do veterinary formulations and human API in small proportions, the focus areas is veterinary API. 

• Company is NOT focused on US and Europe markets. US and Europe require huge investments and long gestation periods. There is enough scope in unregulated markets of Latin American and African markets. 

• The company supplies to formulation manufacturers of those countries as well as to MNCs. This will be strategy going forward as well. 

• The company earlier needed agents to supply to these markets. Now due to better relationships developed over past 5 years company supplies to formulation companies directly. This has reduced the commission costs of the company.

Company was included in Forbes Asia's 200 Best Under A Billion in 2015 & 2016 List.

(Total 7 Companies from All over India in 2016 ) 

(NORMS TO BE INCLUDED IN FORBES LIST :- The annual list honours companies in the region with annual revenue between $5 million and $1 billion, have positive net income and have been publicly traded for at least a year. The top-ranked candidates were screened from among 17,000 companies, based on their sales growth and earnings growth in the past 12 months and over three years, and for the strongest five-year return on equity)

Link :- http://www.forbesindia.com/article/special/seven-indian-companies-in-forbes-asias-best-under-a-billion-list/43981/1

RECENT DEVELOPMENTS IN THE COMPANY :- 

• NGL Fine-Chem Ltd is presently expanding its production capacity by incurring total capital outlay of Rs. 30 crores.

• Current 30cr expansion in Tarapur is almost 90% complete. First phase completed in October and trial was taken. Second phase will be completed till January.

•  Plant will be fully operational for FY19. Total sales can be 60-70cr from this capex in next 2-3 years. There are customer waiting for this capex to complete. 

• The expansion is for current set of molecules already manufactured.The plants has zero liquid discharge and fully automated which require very less man power.

• Company has plans for next round of capex for which company has already procured the land. This capex can be for around 50cr. The company is already seeding the market with these new products/molecules.

• NGL FINE-CHEM LTD. has received revised rating from ICRA. The long-term rating is BBB/Stable and the short-term rating is ICRA A3+.

Source :- Annual Report 2017

💢 FUNDAMENTALS :-

STOCK INFO
Market Cap	260 Cr.
P/E	20.80
52 W High/Low	470/251.50
Face Value	5
EPS	20.19
Book Value	94.71
Price/Book Industry PE	4.44 29.52

💢 SHARE HOLDING :- 

SHARE HOLDING PATTERN
Promotors	65.45%
FII	0.0%
MF	0.0%
Public/NII	34.55%
TOTAL	100%

NGL Fine-Chem Ltd reports Q2 net profit of Rs. 3.44 crore The company has reported net sales of Rs.29.93 crores during the period ended September 30, 2017 as compared to Rs.22.21 crores during the period ended September 30, 2016. The company has posted net profit of Rs.3.44 crores for the period ended September 30, 2017 as against Rs.2.91 crores for the period ended September 30, 2016. The company has reported EPS of Rs.5.54 for the period ended September 30, 2017 as compared to Rs.4.74 for the period ended September 30, 2016. The company has reported net sales of Rs.52.35 crores during the 6 months period ended September 30, 2017 as compared to Rs.47.78 crores during the 6 months period ended September 30, 2016.  H1FY18 RESULT :-  The company has posted net profit of Rs.5.28 crores for the 6 months period ended September 30, 2017 as against Rs.7.12 crores for the 6 months period ended September 30, 2016. The company has reported EPS of Rs.8.53 for the 6 months period ended September 30, 2017 as compared to Rs.11.60 for the 6 months period ended September 30, 2016.

• Company posting continuous Profit from FY12 to FY17....from 1.05 Cr. Net Profit to now 12.47 Cr. Net Profit.

• EPS Grown from 1.7 Cr.  FY13 to 20.17 Cr.  FY17.

• Revenue 12.64 Cr. in FY08 to 103.94 Cr. in FY17.

• Company is reducing debt. Increase in debt is due to capacity expansion. Trying to decrease debt in last two years.

• Company's Asset is increasing Continuously from 14.42 Cr. in FY08 to 77.51 Cr. in FY17

Why I selected this Stock for Study :- 

• Strong Fundamentals and Financials

• Technically Bullish

• MNC Client list & Export oriented business

• Wide spread Work area

• Company was included in Forbes Asia list of Top 200 companies, which shows company's strength

• Company regularly focuses in R&D.

• More than 90% of company's business is API's. More than 80% of the total business is exports.

• Veterinary segment is poised for a strong growth in the next 3- 5 years. Lot of outsourcing opportunities has emerged in this sector.

• With this new capacity, now the company can generate a double digit sales growth in future for next 3 years. 

STOCK CAN TOUCH NEW 52 WEEK HIGH TILL Q3 RESULT AND CAN DO EVEN MORE IF CAPEX WILL BE OPERATIONAL IN FY19.

HAPPY INVESTING

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THE ABOVE IS NOT A RESEARCH REPORT NOT BUY/SELL RECOMMENDATION AND THIS IS ONLY FOR EDUCATIONAL PURPOSE , AND SOME OF MY FINDINGS FROM OPEN SOURCE. ONE CAN CONSULT THEIR FINANCIAL ADVISER BEFORE INVESTING.

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Happy Investing

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