Ultramarine & Pigments Ltd Specialty Chemicals
May not have a moat? Pigments surfactants requirements are decreasing with time?
Market Cap.: ₹ 486.47 Cr.
Current Price: ₹ 166.60
Book Value: ₹ 44.74
Stock P/E: 15.64
Dividend Yield: 2.10%
Face Value: ₹ 2.00
Good dividend yield why?
Company is almost debt free!! Very Good
Profit growth: good 18% I will say + dividend 2% total 20% growth
Net profit = 31cr
So share price is cheap.
Good balance sheet .. Just verify management and moat and you are okay to invest.
Negative cash flow but no debt
Investing a lot in financial activity
windmill is installed
promoters are not selling
No brand though
entering into IT division ? why?
i) Market for pigments continued to pose challenges. There is shrinking demand for laundry and white washing applications.
ii) Erratic supply of Alpha Olefin due to fluctuations in crude pricing. This has had an adverse impact on the Surfactants division, and has limited company plans to expand its customer base.
i) Ultramarine & Pigments has made a continuous effort to bring in more value added products in pigments division, and has developed products like violet, cobalt blue & yellow. This will help company in improving overall realization of Pigments division.
promoters have increased their percentage
definitely looks good on dip can buy sure buy
Family owned business Sampath and Sundararajan family owned maximum share and are related.
I do not understand the business well
but outlook doesn’t look great overall for pigments etc shrinking demand of laundry and white washing
not a great shareholder letter ..
Compare with Sudarshan Chemicals
Final verdict: Can increase my presence by small amount seems okay right?
I am very new to value investing and this is me taking random notes just for myself. Please don’t base any of your decision on these write-ups. That will be foolish.