Excel Industries – a decent long-term bet
Excel industries is positioned to benefit from shift of demand from China. While product concentration poses near term risk,diversification in pharma API, specialty chemicals, strong balance sheet and healthy cashflows remain positives for the longer term
September 17, 2020 / 02:39 PM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
Covid-induced disruptions impacted the Q1 performance of Excel Industries (CMP: Rs 906; Market cap: Rs 1,139 crore). The company reported a YoY dip in revenue, profits and margins. Price erosion in some key products led to lower realizations and closing down of manufacturing units impacted operations.
While the current quarter was a challenging one, the company expects the situation to improve with gradual stabilization at production units. It remains a beneficiary of a shift in demand for chemicals from China....