10000 to 4crs in 18 months 1000rs to 50crs 300% returns 75% promoter holdings A 50 bagger A sureshot 5 bagger Analysis Another fraud? Auto ancillaries Bank sector Blind sell Brand plays Broking Bse Nse Buy calls cements Ceramics/tiles Counters I don't like Debt free businesses Delisting candidates demerger bets Disclosure- I own them Domestic consumption plays E-Commerce pick Education Exit at rallies Famous analysts Famous stocks FMCG Footwear future multibaggers Gems andJewellery Hidden gems High conviction ideas High dividend plays High potential small caps High ROE stocks Holding companies Hotel sector How they looted you.. Indian stock market Infrastructure sector Interesting Microcaps IT KPO Landbank plays largecap ideas Less than 5 PE stocks Liquor Logistics Market lessons Market outlook for 2013 and 2014 Market underperformers Meeting with the CEO Metals Monopoly businesses My 5 baggers My Favourite counters My paid stock recommendations My stock picking techniques nse bse tips Oil exploration Operator calls Paints Penny stock outlook penny stock updates Pharma sector Poultry stocks PSU Publicity freaks Real estate Renewable energy plays Safe bets Sell recommendations Share market Live shipping stocks short term call SOTP plays stock tips stock under 10rs Stocks to watch out for Strong bonus candidates Takeover candidates TATA product tea Textiles The 13 bagger The 45 bagger Trading companies Transformers Turnaround bets Tyres Uncertain/Risky business models Unique businesses

Search This Blog(Over 800 companies covered in the blog).

Archives : Old artciles

Thursday, October 29, 2009

Indian Acrylics Ltd:Penny priced gem/future growth outlook and prospects/news/views/analysis/recomendation

Scripscan:Indian Acrylics Ltd

Story:Acrylic Fibre Industry has taken a big U-Turn in current year. Acrylic Fibre is mainly used for clothes and Acrylic Yarn produced from Acrylic Fibre is warm to manufacture Sweaters, Scarves, T-Shirts, Kids Clothes, Mufflers, Jogging Suits, Socks etc. Its other use for Household Segments for manufacturing Carpets, Blankets, Rugs etc.

Until last year, Acrylic Fibre Industry was suffering heavily due to:

a)Low priced imports in big quantity.
b)All time high price of ACN (which is main Raw Material for making Acrylic Fibre).

However, recently government decided to impose Anti-dumping duty on imports of Acrylic Fibre from China. Simultaneously, ACN prices also dropped heavily in Q4 which, have again gone up in Q1 (but still considerably lower than earlier high price). Consequently, selling price of Acrylic Fibre have gone up by more than 30%. Further, no new capacities have been added in the Industry in last 2 years. Rather, some units of Acrylic Fibre (J.K. Synthetics, IPCL, Consolidated Fibre) have closed down. On the other hand, capacity of user industry has been on the rise. In some, now, Acrylic Fibre manufacturers in India are enjoying Golden period caused by Anti-dumping duty, reasonable Raw Material prices, Sellers Market due to shrinking supplies.

For Acrylic Fibre Industry, April - December is good/peak season. Sales in Jan - March months are on the lower side. There is a strong belief that 10-11 should also be a good year as no new capacities of Acrylic Fibre are coming up.

There are 3 players in Domestic Acrylic Fibre Industry. Indian Acrylics is the largest producer with 40,000 TPA capacity. Pasupati Acrylic is second biggest producer with 30,000 TPA capacity and Vardhman Acrylics has 18,000 TPA capacity. Of late, investors seem to be showing big interest in these scrips as daily traded volumes have risen sharply. These companies have reported turnaround for June Quarter with higher bottomline:

Rs/Cr Rs/Cr

Pasupati Acrylon + 18.04 - 2.89

Indian Acrylics + 5.40 - 6.37

Vardhman Acrylics + 12.41 + 3.35

Conclusion:Plant of Consolidated Fibres is already closed whereas, Plant of J.K. Synthetics became inoperational more than 10 years ago.As against loss of 11.51 crs. in Q2 last year, company will report PAT of 13 crs. for Q2 09-10. Thus, H1 PAT will be Rs. 18 crs. as against loss of 18 crs. in H1 last year. With turnaround of Rs. 36 crs., IAL will be re-rated.Share price can go to Rs. 9/- in short term and chances of 50% appreciation are extremely bright.A great buy altogether.

Important Disclaimer&Privacy policy

This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.

Subscription to Arunthestocksguru

Enter your email address:

Delivered by FeedBurner