Camlin Fine may test Rs 136 in one year:Daljeet Singh Kohli

Daljeet Singh Kohli, Head of Research at India Nivesh Securities told CNBC-TV18, "Camlin Fine Sciences is a story which is not just for 2016 calendar, but also for the next three to four years. Now, basic reason, one is that they are continuously increasing their product portfolio. They have already launched four or five products in the last year which were in trial run, so they will start adding to the numbers this year onwards.""Second, they had taken over a company in Europe which is become now their subsidiary, till now, they are importing everything from there, but with that company coming in, the hydroquinone, that has given them the technology to produce it. Now, extending that same benefit, they are putting up a new plant in the Dahej which was will come up in 2018 and that, they will start producing all those same products here.""Now, the benefit will be the subsidiary will be free to sell the entire produce to the world market, so right now 60 percent of that is shown as internal consumption, that will go away. So, technically, their numbers will become very big in the year 2018 and 2019.""And third thing is that with the companies positioning itself into a lot of these value added products like Vanillin and things like SH Kelkar is doing, fragrances, etc. So, it is a bigger product basket than SH Kelkar available at much cheaper valuation makes sense to look at this stock. We have initially given a one year target as Rs 136, but this can be easily rolled over in the next years as well when this numbers come in," he added.