ICICIdirect.com's report on Camlin Fine Sciences
Camlin Fine Sciences (CFS) has announced the setting up of a new facility at the Dahej SEZ for manufacture of capacity of 9000 MTPA of hydroquinone and 6000 MTPA of vanillin
The estimated cost of the project is Rs 191 crore. The company has acquired land measuring ~64 square metre in Dahej for Rs 8 crore
We believe this expansion would pave the way for growth over the next five to six years with a sizeable entry into the global vanillin market
"While the bottomline growth of ~13% CAGR in FY15-17E appears modest, CFS’ next growth phase would hinge on its success in the Diphenol downstream segment foray and entry into blends business (forwards integration for TBHQ/BHA business). We maintain our BUY recommendation and ascribe a P/E multiple of 15x on FY17E EPS of Rs 7.3/share to arrive at a fair value of Rs 110/share", says ICICIdirect.com research report.
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