Food colour companies are in capacity overdrive. What next for investors?
Indian food colour industry is set for dominance after the sharp scale-up in capacity expansion and end-market expertise. Vidhi specialty remains our preferred play
October 12, 2021 / 12:45 PM IST
Intrasoft Technologies | University of Notre Dame du Lac sold 2.36 percent stake in the company via open market transaction, reducing shareholding to 4.4 percent from 6.76 percent earlier.
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
The market cap of Indian food colour companies in the listed space has climbed up two to three times in the current year. This is chiefly because of the capacity expansion in this space and the emergence of India as the leading supplier of this essential ingredient to the consumption industry. Vidhi Specialty Food Ingredients (CMP: Rs 376; Market Cap: Rs 1,882 crore) is our preferred play in this segment.
Capacity additions across the board
Leading food colour companies in India...