Camlin Fine Sciences Ltd., incorporated in the year 1993, is a Small Cap company (having a market cap of Rs 2105.43
Crore) operating in Chemicals sector.
Camlin Fine Sciences Ltd. key Products/Revenue Segments include Fine Chemicals, Traded Goods, Service Income, Export Incentives, Commission and Scrap for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 311.84 Crore, down -8.65 % from last quarter Total Income of Rs 341.38 Crore and up 20.82 % from last year same quarter Total Income of Rs 258.09 Crore. Company reported net profit after tax of Rs -3.74 Crore in latest quarter.
Investment Rationale
The company’s long-term story remains intact supported by 1) Capacity expansion, 2) Introducing value-added downstream products, 3) Lockheed Martin deal, 4) Entering the Omega-3 fermentation business through AlgaIRNutra Pharms and, 5) Scaling up of capacity utilization at the Dahej Facility to 100% levels. However, while the company’s medium to long-term prospects appears fair, the brokerage believes the near term uncertainty and RM headwinds may weigh on its overall profitability. It thus, revises EBITDA Margin estimates for FY22/23/FY24 downwards leading to a TP revision to Rs 200/share (Rs 215/share earlier). It maintains a BUY rating on the stock. Key risks – a) Slower-than-expected ramp-up in commissioning of Capex projects, b) Volatility in RM prices and forex, c) COVID-led uncertainty and business disruption.
Promoter/FII Holdings
Promoters held 21.61 per cent stake in the company as of 30-Sep-2021, while FIIs owned 5.01 per cent, DIIs 19.03 per cent.
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