Chemplast Sanmar Ltd., incorporated in the year 1985, is a Small Cap company (having a market cap of Rs 10545.91 Crore) operating in General sector.
Chemplast Sanmar Ltd. key Products/Revenue Segments include Sale of Products, Export Incentives, Scrap, Lease Rentals and Other Services for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 1694.80 Crore, up 73.96 % from last quarter Total Income of Rs 974.24 Crore and unchanged .00 % from last year same quarter Total Income of Rs Crore. Company reported net profit after tax of Rs 151.34 Crore in latest quarter.
Investment Rationale
The brokerage shares management optimism on the strong PVC cycle sustaining for next few years with demand outgrowing supply, and restrictions on PVC manufacturing / expansion in China. Chemplast has infrastructure to expand its S-PVC capacity 3x at Cuddalore plant and, at current prices, capex payback period has shrunk to just one year. The brokerage expects the company to soon announce doubling of its S-PVC capacity, which should help improve the growth outlook significantly. The brokerage has marginally cut EPS estimate by 3% for FY22E on a one-off in finance cost, but increase the same by 3% for FY23E. The brokerage revises target price to Rs940 (earlier: Rs910) with an unchanged multiple of 20x FY23E EPS.
Promoter/FII Holdings
Promoters held 54.99 per cent stake in the company as of 30-Sep-2021, while FIIs owned 8.84 per cent, DIIs 27.7 per cent.
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