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Recently, we came across Vishnu Chemicals when running a screen to identify potential investment opportunities. The numbers looked interesting and we decided to dig deeper.
On reading more we found out that the company deals in Chromium and Barium compounds and is the largest manufacturer in India for both.
Below, we have shared the details from the Nov'22 presentation of the company. Hope you find them useful for your own research on the stock.
Recently, we released our New Stock Recommendation for Premium Members
It's a food processing company, virtually debt free, compounded profits at 20% + consistently, maintained returned ratios like ROE and ROCE at 20% +, doubled its market share in exports in its segment in the last 6-7 years and yet available at less than 7 times Pre-tax earnings.
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Vishnu Chemicals - Notes from Q2 FY 23 presentation
- Products include Chromium Compounds and Barium Compounds
- Long standing relationships with over 100 customers across Pharmaceuticals, Automobiles, Glass, Refractory, Ceramics, Tiles, Pigments & Dyes among others
- Leading position in the niche market with no domestic competitors in chromium business and unorganized competition in the Barium business with dominant market share
- Entry barriers due to complex 24/7 continuous manufacturing processes and extensive capital requirement
- 4 manufacturing units
- Visakhapatnam, Andhra Pradesh - Manufactures Chromium Chemicals
- Hyderabad, Telangana - Manufactures Chromium Chemicals
- Bhilai, Chhattisgarh - Manufactures Chromium Chemicals
- Srikalahasti, Andhra Pradesh - Manufactures Barium Chemicals
- Chromium Chemicals:
- Sodium Dichromate is a strong oxidizing agent and a source in preparing chromium based derivatives. It is used in metal passivation and finds applications across industries like pharmaceuticals, textiles, constructions to name a few
- Barium Chemicals:
- Other players have estimated capacity of less than 1/10th of Vishnu’s capacity
- Capacity expansion:
- 30 crore for Chromium division towards expansion of capacity from 70,000 tonnes to 80,000 tonnes. Production has started
- 90 crore for Barium division to introduce a new specialty chemical, Precipitated Barium Sulphate which is an import substitute with a great opportunity in India. Expected commencement of operations H1 FY 24
(End)
Disclaimer: This is not a recommendation to buy/sell Vishnu Chemicals. These notes are as announced by the companies on exchanges and only for the purpose of information and education.
Best Regards,
Ekansh Mittal
Research Analyst
Web: https://www.katalystwealth.
SEBI Research Analyst Registration No. INH100001690
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Name: Ekansh Mittal Email Id: [email protected] Ph: +91 727 5050062
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