Sumit Bilgaiyan
Andhra Petrochem is the only producer of oxo-alcohols in India. The products are used in PVC industries such as cables, footwear, sheets and films.
The company was established with a capacity to produce 30,000 MTPA of oxo-alcohols at Visakhapatnam, Andhra Pradesh, India. The plant has recently undergone an optimization & modernization scheme to increase the capacity to 73,000 MTPA.
The plant employs the latest state of art of technology from M/s Davy Process Technology, London, UK, with total capital investment of around Rs 497 crore. The company commenced commercial production in February 1994 and after the modernisation on May 1, 2010.
It is trading below 4 P/BV. It has reported excellent results for Q1FY19. The sales soared by 44 percent to Rs 165 crore with a PAT of Rs 46.5 crore. At the current market price (CMP), the stock trades at a P/E of just 13.5x on its TTM EPS of 5.47. It will benefit from the depreciating rupee as it also exports its products.
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