Hidden Gems: Dynemic Products Ltd.

Dynemic Products Ltd is one of the major manufacturer and exporter of Food Colors, Lake Colors, Blended Colors, FD&C Colors & Dye Intermediates. This color used in Confectionary, Beverages, Proceed Food, Bakery Products, Dairy Product, Pet Foods, Pharmaceuticals, Cosmetic & Personal Care Products.

Key Facts:

  • 72%  of company revenue comes from Food colors.
  • Manufacturing facilities include two well equipped plants spread over 24000 Sq Mt of area which  adhered to international norms & requirements.
  • The company has established well-equipped Quality Control Laboratory with latest sophisticated instruments like HPLC, A.A.S, Spectrophotometer, Color Matching Machine, Potentiometer etc.
  • 75% of Company’s turnover comes from exports.
  • Company has reported good result in Q2 with PAT increased from 313lac to 460.39lac.
  • Total FY17 PAT stood around 13.43 cr.

Stock Outlook:

  • M-cap: INR 214 cr
  • CMP: 193 INR (07th Dec 2017)
  • PE: 16.3
  • EPS:11.83  INR
  • Book Value: 66.6 INR
  • Share capital is 11.33 cr of FV 10.
  • Promoter Share holding is 39.88 %
  • Low liquid share with daily ~2k stock traded.

Future outlook:

  • The food colors market size is projected to reach USD 3.75 Billion by 2022, at a CAGR of 8.40%. Asia-Pacific is the fastest growing region in the food colors market.
  • Compound profit growth of last 10 year is 21.46% and same performance is expected to continue further.
  • In next 3 year this stock can outperform and may deliver 2x-3x returns.

 

Be Smart. Invest Smartly.

Disclaimer : Please take advice of your financial advisor before any investment.

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