Camphor & Allied Products

Camphor & Allied Products is a pioneer in the field of Terpene Chemistry with technology from Dupont, USA. The products of the company are Synthetic Camphor, Terpineols, Pine Oils and Resins etc & they find application in Fragrance, Pharmaceutical, Soap & Cosmetics & Varnishes Industries. CAPL has two plants – first at Bareilly, UP & second at Baroda, Gujarat. CAPL also has a dedicated in-house Research Center.
CAPL has been witnessing major change in the performance and profitability since the change in the management in 2008. The company was taken over in 2008, via stake purchase and open offer @ Rs 167/share.
The new promoters are leaders in fragrance industry – Oriental Aromatics Ltd. Since then the turnover has increased from 105 Cr to 165 Cr and NP from 0.49 Cr to 10.18 Cr, yet the stock is available at Rs 100 only.

Attractive Valuations:

  • The stock is available at 20% discount to its BV of 125
  • Stock is trading at just 5 PE
  • At CMP of 101, the M Cap is just 51 Cr. Operating profit is close to 20 Cr.
  • Another compelling factor is the discount to the open offer price at which the company was taken over earlier.

Looking at the quick turnaround, much better revamped websites, strong tax pay-outs, the new promoters seem to be quite capable & honest. If the company continues the good performance, the stock should be prove to be an excellent long term investment and wealth creator.

Company’s Website: http://www.camphor-allied.com

21 thoughts on “Camphor & Allied Products”

  1. Ayush,
    Had checked this and agree that promoters are old and performance wise stock is cheap but found that industry has stiff competition and compay has no brand. My 2 cents I could be wrong.

  2. Dear Amit,

    Indag Rubber has been doing well and valuations are attractive.

    Span Diagnostics has done well in last qtr…if they can repeat the performance…the stock will do well. Historically earnings remain volatile for Span.

    Regards,
    Ayush

  3. Hi,
    I really liked your blog, good info. I m new to fundamental investing. I was wondering, how you came up with expected 2011-03 earnings.

    I 'd really appreciate, if you share that part too.

    Regards
    Yogesh Tiwari

  4. Hi Yogesh,

    The FY 2011 expectations are based on the past growth and recent qtrs posted by the company. For example – the company had done a turnover of close to 47 Cr in March qtr…so if they better that, they would be able to do a turnover of 200 Cr +.

    Conservatively we should just look at past earnings 😉

    Regards,
    Ayush

  5. samtel color is company making cathod ray tubes.but it has done a tie up with a foriegn company named thales.out side only lcd being made.but lot of organisations in india as well abroad especially defence using equipment which will depend on crt techn for times to come.this company is using this a oppurtunity to continue making crt.It is also giving part of avionics system of sukhoi 30 aircraft of indian air force.margins in such deals are extremely high.current p/e is 3.under researched stock.up 5% today.

  6. Hi Ayush,

    What do you think of Geodesic Ltd? On charts it looks very weak. Could you please comment on fundamentals.

  7. That’s very true…!! I work in the same industry 🙁

    Any ways, thanks for the reply. Your Bolg has been of great help in understanding the fundamental side of evaluating an investment.

    Regards,
    Manmohan

  8. Hi Ayush,

    Any comments on the results of this quarter and the quality of earnings? Looks like its going to post more that Rs. 22 EPS for this year.

    Regards,
    Manmohan

  9. Dear Manmohan,

    The results are inline with expectations, though I would have liked to see more of growth in the company.

    Regards,

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