Ultramarine & Pigments Ltd

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?

Good P/E!!

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

Qualified directors

windmill is installed

promoters are not selling

No brand though

entering into IT division ? why?

Risks:

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.

Good:

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

IT ES

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?

Disclaimer
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.

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