Ultramarine & Pigments

During the first five months of the current year, the company achieved a sales turnover of Rs 26.65 crore and expects to do well in the current year. In the current year, the company's detergent plant is running at a full capacity. The contribution of blue plant and plastic units is expected to be better. Windmills set up at a cost of Rs 3.86 crore generated 1.12 lakh units of electricity in fiscal 1996. During the first quarter of FY97, electricity generation was 5.20 lakh units, which means the company can save on cost of power and fuel. The new plant of linear alkyl benzene sulphonic acid, with a capacity of 16,000 tonnes, is expected to be commissioned in the current year. Besides, the company plans to expand the capacity of the blue plant at Ranipet at a cost of Rs 8 crore. In the year to March 1996, the synthetic detergent plant, which was operated at a capacity of over 100 per cent, contributed Rs 28.68 crore (Rs 4.95 crore) to the company's turnover. Sales turnover of ultramarine blue rose marginally to Rs 21.73 crore, from Rs 20.56 crore. Thus, overall sales turnover showed a growth of 62 per cent to Rs 58.84 crore. With high cost of inputs, particularly raw material, GPM declined marginally to 12.1 per cent from 12.4 per cent. As a result, gross profit showed a slower growth of 58.9 per cent, as against sales growth of 62 per cent.

 

Market price: Rs 91; EPS: Rs 16.83; P/E: Rs 5.41