This article we can explore the possibility of Shankar Lal Rampal Dye-Chem Ltd as a multibagger 2022 Stock based on Value Investing principles.
| Website | https://srdyechem.com |
| CMP | Rs.469.00 |
About Sankar Lal Rampal Dye Chem Limited
Shankar Lal Rampal Dye Chem Limited has made a prominent mark for itself in the Chemical industry, since its incorporation in the year 1980. Based in Bhilwara (Rajasthan), the company is named as a prominent Trader, Exporter, Importer, and Supplier of Sulphur Dyes, Paraffin Wax, Phosphoric Acid, Sodium Sulphide, Hydrogen Peroxide, Citric Acid Monohydrate, Phosphate Chemicals, and Refined Glycerine, in India. Their products are known for their purity and accurate chemical compositions.
The company also provides different chemicals on commission basis to meet the specific requirements of the clients. The quality of their products is reckoned across the globe, such as in India, Malaysia, Indonesia, Bangladesh, etc. The clients place repeated and bulk orders with company, which reflects there trustworthiness and expertise in the worldwide markets.
Shankar Lal Rampal Dye Chem Limited was setup in the year 1980 in Bhilwara (Rajasthan). The company is efficiently managed by Mr. Rampal Inani, the experienced Director of the enterprise. The company is a prominent Trader, Exporter, Importer, and Supplier of Sodium Sulphide flakes Red and Yellow, Soduim Hydro Sulfite , Hydrogen Peroxide, Citric Acid Monohydrate / Anhydrous, Phosphate Chemicals-sodium Hexameta phosphate, Sodium tripoly phosphate, Tri sodium Phosphate, Sodium Nitrite, and Refined Glycerine in India.
The company is soaring commendable heights in the industry, due to the factors such as Unmatched Products , Competitive Prices, Testing Facilities , Customized Production, Timely Delivery and Widespread Network. The company has spread its base all across the globe since its inception. India, Malaysia, Indonesia, Bangladesh, China, Egypt, Japan, Germany, Turkey, Iran, U.A.E., Thailand etc.
The company has a sophisticated manufacturing unit, which is spread over an area of 1.5 lakh square feet. This unit is equipped with all the modern processing, testing, and packaging facilities to ensure premium range of products.
Products & Services
- Sulphur Dyes
- Fully Refined Paraffin Wax
- Semi Refined Paraffin Wax
- Phosphoric Acid
- Sodium Sulphide Flakes
- Sodium Hydrosulphite
- Hydrogen Peroxide
- Citric Acid Monohydrate
- Phosphate Chemicals
- Refined Glycerine
- HuOther Chemical Products
Profit & loss
Warren Buffett Checklist
| Factor | Value |
| Economic moat | Moderate |
| Growth | Good |
| Valuation | Good |
| Debt | Moderate |
| Integrity | Good |
Positives
- Company is into Capacity Expansions to Leverage from Rise in Demand for Organic Pigments
- Revenue & Profit growth of 30% above Maintained
- ROE & ROCE Track Record are good
- Company is focusing on creating Own Manufacturing Facility
- Intrinsic Value Discount of 80%
Negatives
- Manufacturing Facility limitation leading to Supplier Dependency
- Increased Competition from Dye & Chemical industry
- Currency Exchange risk from Global Markets
- Stock is trading at 13X of Book Value
- Debt is moderate at 0.3 DE levels
Summary
As per the Expansion & Value Investing grounds the company is having Multibagger Properties.
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