The acquisition of a German dye company early last year, has propelled the stock of Kiri Dyes and Chemicals to new highs. In trade today, it was up 0.36% or Rs 1.80 to close at Rs 501.05. It touched an intraday high of Rs 507 and an intraday low of Rs 492. There were pending buy orders of 26 shares, with no sellers available. The total traded volumes were 12,299 shares. The stock however has gained 49.41% over the last 15 days.
It touched its 52 week high Rs 877.00 and 52 week low Rs 317.95 on 04 Feb, 2010 and 10 Dec, 2010, respectively. Currently, it is trading -42.87% below its 52-week high and 57.59% above its 52-week low. Its market capitalisation stands at Rs 952 crore. The company's trailing 12-month (TTM) EPS was at Rs 15.69 per share. (Sep, 2010). The stock's price-to-earnings (P/E) ratio was 31.93. The latest book value of the company is Rs 78.54 per share. At current value, the price-to-book value of the company was 6.38. The dividend yield of the company was 0.3%.The Gujarat-based integrated manufacturer of reactive dyes and intermediates acquired Germany's DyStar in February 2010 for 55 million euros. In November 2010, it bought DyStar's subsidiary through its wholly-owned subsidiary Kiri Holding Singapore.It plans to invest about Rs 240 crore as part of a drive to expand its intermediate dye capacity in India for which it raised funds through a qualified institutional placement. The promoters diluted equity from 74% to 58% post its fund raising raising of Rs 240 crore.Earlier, the company had been following the business-to-business model as it had been supplying mainly to dye companies around the world. Post the acquisition of DyStar, the company will sell its dyes to industries across the board.The company is now well positioned to tap the European market as well. It has turned the ailing German company around and is now seeing profits flow, just six-eight months into the acquisition.Also read: Expect DyStar to do 700m euro revenue in 2013: Kiri DyesThe company plans to list DyStar in 2013. Kiri's initial projections suggest that DyStar would add 80-100 million euro to its bottomline and a topline of 700 million euro by 2013. Kiri Dyes' standalone profit has grown at 45% CAGR while sales have grown close to 40% annually.For the quarter ended September 2010, it reported a net profit of Rs 11.13 crore on net sales of Rs 126.31 crore. It reported revenues of Rs 345.55 crore in FY10.Peer comparison:| Company | Last Price (Rs) | Market Cap (Rs in Cr) | Sales Turnover (Rs in Cr) | PAT (Rs in Cr) |
| Clariant | 729.35 | 1944.5 | 942.77 | 108.14 |
| Kiri Dyes Chem | 502 | 953.8 | 345.55 | 24.45 |
| Atul | 188.4 | 565.2 | 1198 | 57 |
| Sudarshan Chem | 676.35 | 468.22 | 570.57 | 45.91 |
| JD Orgochem | 3.25 | 4.31 | 0.82 | 0.1 |
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