Wednesday, May 20, 2015

KKALPANA INDUSTRIES (526409):- A VALUE PICK STOCK

Dear friends,

  Today we are discussing very interesting stock with highly undervalued,investors having long term views can buy and accumulate this stock. 



             

                 " KKALPANA INDUSTRIES "

                       




 




Kalpena Industries Limited is part of a dynamic industrial house of Surana's.In last 3 decades it has attained the status of most respected Polymer Compounder in India.During these 3 decades we have moved from Producer of commodity Compounds like PVC Compounds to high performance compounds like Medium Voltage Insulation and Semi Conducting grades.

Under the dynamic and able leadership of its promoters the company has moved from annual capacity of 3000 tons to a level of 150000 tons plus.This could be achieved due to investment in Modern Equipments & World Class R&D set up under the supervision of highly competent and enabled personnel's in every field be it Manufacturing,Marketing or R&D.Continuous improvements and focus on new product developments along with use of most modern quality tools have ensured that company keep pace with ever growing quality requirements of the customers as well as industry in general.

Kalpena have always focused in expanding its reach by servicing new geographic's as well as developing new products continuously. Regular and consistent exports to almost 24 countries of various products is testimony of our capabilities.Our customer's retention is our prime objective and we have always worked hard to device tools to satisfy our customers apart from offering unparalleled quality.This combination of good product quality and superior services have allowed us to penetrate markets across the globe and help us to retain and expand our customer base in the times of intensified competition.

As in the past we have never settled with our past laurels and have tried to improve our performance with every passing month, quarter & year.Even today we are moving ahead with same vigor to maintain the high growth rate.Company have already taken up major expansion plan to increase the capacity of existing products like PVC Compounds,XLPE,Semi Conducting and Filled Master Batches.Company is also working on launch of new products.The products in pipeline are cross Linkable varity of Halogen Free Flame Retardant,Strippable Semicon for cable industry, the engineering plastic products for automobile and appliance industries.We are also working on the product areas meant for alternative source of energy like Solar Energy etc.

We are quite confident that with the resources available with us and with our overall capabilities we will continue to not only meet but exceed the expectations of our customers,shareholders and business associates.


The Pillars
Today, under the dynamic stewardship of Mr. Narrindra Suranna, Chairman & M.D. the group has culminated to attain a status of largest manufacture of polymer compounds in India with an installed capacity of PVC compounds 30,000 MT, Silane based compound 40,000 MT, XLPE compound 12,000 MT, PE & PP filled compound 36,000 MT, Semicon compound 6,000 MT for strippable and non-strippable applications. In additional to above, KIL is manufacturing speciality compounds and master Batches each 6,000 MT per annum. The quality of all products conforms to national & international standards.

 

  Promoter holding 73.5% stake in company, kalpana inds posted good set of results, and expected above 20 EPS for the full year of 2014-15. Also company announced stock split of 2rs stock from 10rs.


 Stock trading only in BSE @ 128, one can buy @ current price and add more in correction (if any) this one stock can give in multiple return in portfolio. After stock split one can expect some value buying and up move  in this stock.


Disclosure:- I am holding this company shares

Tuesday, May 12, 2015

ASHOK ALCO-CHEM LTD (524594) :- BUY

Dear friends,

   Today we are discussing stock from chemical sector, this stock can give high return to portfolio investors.




     




Ashok Alco - chem Limited (AACL) was incorporated as a Public Limited Company on 18th November 1992 under the Companies Act, 1956 in Maharashtra. The Company was promoted by the Kadakia family for manufacturing and marketing of Industrial Alcohol, Acetic Acid and other downstream products like Ethyl Acetate for industrial use in pharma, ink, paint, adhesive, resin, flexi packaging, perfumery and many other industries.

Shri. Manilal H.Kadakia, the patriarch, freedom fighter, fondly called ‘Papaji’, was the founder Chairman having several decades of business experience in Cotton Trade and various other Chemical Companies.

The manufacturing facility was set up at Mahad MIDC, Maharashtra which is 170 kms from Mumbai and offers excellent logistics facility being very close to JNPT port terminal. The plant is spread over a land area of about 28000 sq.mts. Apart from this, the Company also has a residential plot ad-measuring 2438 sq.mts and buildings for residential quarters for its employees.

The Company’s plant is one of the leading alcohol based facility currently having installed capacity to produce 13,000 MTs of Glacial Acetic Acid, 30,000 MTs of Ethyl Acetate and 10,500 MTs of Acetaldehyde per annum.

Apart from the manufacture of Chemicals, the Company also commenced trading in some mineral products mainly for exports from the year 2009 which has given a substantial boost to the top line figures and a ramp-up in revenues as well as profitability.

The company’s diversification into Chemical was a major move and today AACL is among the key players in Chemical from India. A new exciting area, with immense growth potential and limitless possibilities, opened when the company decided to move into Ceramic and Mineral products. When it comes to our products we follow only one motto i.e.
"No Compromise On Quality".


a. Ethyl Acetate
b. Glacial Acetic Acid
c. Acetaldehyde



Ethyl Acetate

Ethyl Acetate is an ester of Ethanol and Acetic Acid, ( systematically Ethyl Ethanoate, commonly abbreviated EtoAc or EA ) an organic compound having formula CH3COOCH2CH3. This colourless solvent has a characteristic sweet / fruity smell.

Application

Ethyl Acetate is used in a variety of coating formulations such as epoxies, urethanes, cellulosics, acrylics and vinyls. Applications for these coatings are numerous including wood furniture and fixtures, agricultural, construction and mining equipment, auto refinishing, and maintenance and marine uses.


Ethyl Acetate has applications as a solvent in inks for flexographic and rotogravure printing. It is used as an extraction solvent in the production of pharmaceuticals and food, and as a carrier solvent for herbicides. High purity product can be used as a viscosity reducer for resins used in photoresist formulations in the electronics industry.

 

 

a. Ball Clay
b. Quartz
c. Feldspar


Ball Clay

Ball Clay a member of kaolinite family, is renowned for its plasticity and green strength, and as such it forms a major part of many ceramic applications, including Sanitary ware, Tiles, Tablewares and to an increasing extent non-ceramic applications like functional fillers and advanced application for example technical ceramics.

They consist varying proportions of kaolinite, mica and quartz, with small amounts of organic matter and other minerals and commercially valuable because they increase the workability and strength of various ceramic bodies and have white or near white firing characteristics.

Ball Clay is processed to minimize the levels of coarse particles. This enhances better workability and higher strength.

Applications

A vital material in ceramics:

Ball Clays are used in many different industries, but in particular form a vital component in ceramic manufacturing.  Kaolin (‘china clay’) produces a very white color when it is fired, but used alone it is brittle and weak and must be mixed with ball clay to produce a workable, malleable raw material.  As a result of their sedimentary origin, raw ball clays have a wide range of colors.  However, many of them are valued by the ceramics industry for their white-firing properties, which are determined by the levels of iron and other coloring/fluxing oxides within the clay.

Sanitaryware:

A ‘ceramic body’ for sanitaryware typically includes 30% ball clay to provide plasticity and workability, 20% kaolin, 30% feldspar and 20% quartz/silica.

Tableware:

Ceramic tableware utilizes ball clay to provide high plasticity and a good white-fired color, combined with kaolin, feldspar and quartz.

Wall and floor tiles:

Combined with talc, feldspar, quartz/silica and kaolin, ball clays are utilized for their plasticity and bonding properties.

Glazes and Engobes:

Ball clays are also used in the production of coatings for ceramic products to ensure perfect finish.

Refractory clays:

An ability to resist the effects of extremely high temperatures makes ball clay ideal for use in refractory products such as kiln insulation and furniture.

Construction ceramics:

Building materials such as bricks, clay pipes and roof tiles all contain ball clay.

Electrical Porcelain Insulators:

Ball Clays are found in the electrical porcelain components that provide insulation from high voltage currents.

Non-ceramic applications:

These include the construction industry; horticulture, agriculture and amenity industries; used as fillers and extenders in polymers, adhesives, plastics, sealants, fertilizers and insecticides. 

 

 

 

 


a. Core Minerals
b. Other Minerals


Apart from the manufacture of Chemicals, the Company also commenced trading in some mineral products mainly for exports from the year 2009 which has given a substantial boost to the top line figures and a ramp-up in revenues as well as profitability.

Core Minerals

1.Bauxite

Bauxite is an aluminium ore and is the main provider of aluminium. This form of rock consists mostly of the minerals gibbsite Al(OH)3, Boehmite γ-AlO(OH), and diaspore α-AlO(OH), in a mixture with the two iron oxides goethite and hematite, the clay mineral kaolinite, and small amounts of anatase TiO2.

Application

About 85% of all the bauxite mined worldwide is used to produce alumina for refining into aluminum metal. Another 10% produces alumina which is used in chemical, abrasive, and refractory products. The remaining 5% of bauxite is used to make abrasives, refractory materials, and aluminum compounds.

The lightness, strength, and corrosion resistance of aluminum are important considerations in its application. Metallic aluminum is used in transportation, packaging such as beverage cans, building construction, electrical applications, and other products.

Aluminum, the third most abundant element at the Earth’s surface, is apparently harmless to plant and animal life.


2.Bentonite
Bentonite is an absorbent aluminium phyllosilicate, essentially impure clay consisting mostly of montmorillonite. There are different types of bentonite, each named after the respective dominant element, such as potassium (K), sodium (Na), calcium (Ca), and aluminum (Al).

Bentonite usually forms from weathering of volcanic ash, most often in the presence of water. For industrial purposes, two main classes of bentonite exist: sodium and calcium bentonite.


Applications

Bentonite Use in cosmetic and pharmaceutical preparations:

Bentonite gels are used as a carrier for a number of cosmetic preparatios, tooth-pastes, creams for skin and other similar products. For the preparation of cosmetic creams, bentonite is generally used as a paste formed with water and glycerine. Bentonite when intimately mixed with water in the proportion of one to four gives a pasty mass with the consistency of a heavy grease and in this form it is used for the preparation of medicinal ointments. Bentonite in the natural state is non-poisonous and harmless; thus it finds use in tooth-paste and even in the preparation of lipstick.

The swelling type of bentonite is finding increasing use in the manufacture of insecticides and paints. The latest use has been its development as a bonding agent in pelletizing iron ore fines in the USA. The taconite agglomeration plant in north-eastern Minnesota consumes a considerable quantity of bentonite.

Bentonite Use as grouting material:
Bentonite has great water binding ability and consequently very low permeability to water. It has been found, that the prmeability of the soil is reduced considerably when substituted by sodium bentonite. Hence, this material is often employed in construction engineering ot make a porous medium water-tight. It can be used alone or with some other grouting material.

Bentonite Use in drilling muds:
Drilling muds consist of water to which sodium bentonite and pulverized barytes are added. Such muds are prepared mainly for deep drilling, like oil-well drilling. Bentonite imparts two properties : It gives the fluid a viscosity several times that of water and thixotrophy; It seals the wall of the holes, thus preventing water loss.
he quantity of bentonite used is variable depending upon the depth of the hole to be drilled. Generally one tonne of bentonite is used to prepare about 100 barrels of mud.


Bentonite Use as decolourizer:

Decolourizing bentonites are those which carry Ca and / or Mg as an exchangeable ion. They are used in the decolourization of animal and vegetable facts (like ground-nut, castor-oil and Vanaspati) and petroleum oil, lubricants, paraffins and other waxes. These are decolourized in two ways: By the percolation method, By the contact method.

Bentonite Use as foundry sands:
Bentonite is utilized in foundry to bind the sand grains into desired shapes. Bentonite helps in retaining the mechanical shape of the mould by making the particles of sands adhere and also making the surface impermeable. Strength and fusion point are the two important properties desired for selecting bentonite. Generally, the swelling type of bentonite is used though other types of bentonites have also been used.

3.Kaolin
Kaolin is a soft white mineral which has a large array of uses. It is most commonly found in the form of kaolin clay, a fine clay which was originally produced in China, which is why this clay is sometimes referred to as “China clay.” Sources of this mineral can be found all over the world, including the United States, China, Brazil, Australia, and parts of Eastern Europe.

Application

Multiple Properties - Multiple Uses:

Kaolin is part of our natural world, and its uses are multiple and diverse. Because of its whiteness, fine particle size and plate-like structure, kaolin is suitable as a coating, functional filler, extender, ceramic raw material and pigment. It also holds importance as a raw material in refractory applications, catalysts, concrete and fiber glass. Kaolin is a unique industrial mineral that remains chemically inert over a wide pH range and offers excellent coverage when used as a pigment in coated films.


Paper:
Kaolin has been used in papermaking for many years, both as a coating pigment and as a filler to replace fiber. Kaolin is especially suited for paper applications because it possesses desirable optical properties, is generally chemically inert and is also relatively inexpensive when compared to other minerals.

Plastics:
Kaolin is widely used as filler in the plastics industry because of its inert chemical nature and its unique size, shape and structure. In fact, the U.S. plastics and adhesives industries consume up to 125,000 tons of kaolin per year.

Agriculture:
Kaolin is used as a carrier and diluent in fertilizers, pesticides and related products. Due to its platy structure, kaolin is very suitable as a carrier because it aids the retention of the formulation on the plant.

Rubber:
Kaolin is commonly used as functional filler in rubber applications. While kaolin improves overall performance for rubber in general, different types of the white pigment play specific roles in rubber applications.

Paint:
Kaolin has been used in paints for decades and is commonly included in the extender pigments category. Kaolin is used in paint to: 1) reduce the amount of expensive pigments, such as titanium dioxide; 2) assist with desired rheological properties that help maintain proper dispersion; and 3) provide bulk to the product. 

 

    Promoter holding good 56% stake in 4.13cr paid up capital, company posted 277cr top line and 10.55cr bottom line with an EPS of 25.4 in latest 9month ended 2014-15. Just 69 cr market cap company with anual sales around 400cr with book value of 40. Stock trading only in BSE @ 150 level, long term investor can buy this stock @ current price, this one stock can give multiple return in portfolio.

Disc: It is safe to assume that I have vested interest in this stock