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Wednesday, June 24, 2015

Dynemic Products(532707): Buy at CMP of Rs 49 one year target 65




About Company: Dynemic Products Ltd. is an ISO 9001:2000 & HACCP Certified Companye one of the major manufacturer and exporter in India, offering complete range of Food Colours, Lake Colours, Blended Colours, FD&C Colours & Dye Intermediates. Dynemic stands among the major Food Colours manufacturers in India and one of the most reliable sources for entire range of Food Colours. All the products manufactured by Dynemic meet the regulatory requirement of BIS, EU, FDA & WHO Specification, also it full fill criteria of Kosher & Halal Certification.

Company produced food colours are used in various industries such as , Pharma, FMCG, Bakery,Dairy, Beverages,  Confectionary etc.

Around 70 percent of the Company’s products are being exported world-wide including USA, UK, Germany, South America, Middle East, South East, South Africa, Indonesia, Thailand, Philippines, China, Brazil, Argentina, Chile etc. The Company has earned remarkable growth in its exports business over the years with excellent rapport with world-wide quality conscious

Manufacturing units : It has 2 plants in Ankleshwar

Financial Performance:

 Cr.)
2015
2014
2013
2012
2011
Revenue
128.36
116.37
85.76
82.94
63.69
Other Income
0.28
0.37
0.73
0.3
1.7
Total Income
128.64
116.74
86.49
83.23
65.39
Expenditure
-110.55
-97.73
-76.49
-72.01
-54.17
Interest
-2.25
-1.37
-1.56
-1.6
-1.24
PBDT
15.84
17.64
8.43
9.62
9.98
Depreciation
-3.03
-1.81
-1.75
-1.63
-1.5
PBT
12.82
15.82
6.68
7.99
8.48
Tax
-3.48
-5.59
-2.35
-2.69
-2.83
Net Profit
9.34
10.23
4.33
5.3
5.71
Equity
11.33
11.33
11.33
11.33
11.33
EPS
8.25
9.03
3.83
4.68
4.99
 CEPS
10.92
10.63
5.37
6.12
6.36
OPM %
14.09
16.33
11.66
13.53
17.61
NPM %
7.28
8.79
5.05
6.39
8.97

 

Company has been growing at decent pace and consistently maintaining the profitability with good profit margin and dividend paying record. Company has delivered EPS of Rs 8.25 in FY14-15 and expected to d deliver dividend of 15%.At CMP of Rs49-50 the stock is availaible cheap at PE multiple of 6.Company is in good position to achieve turnover of 150 crores in 2015-16 with expected EPS of 10 the stock can easily touch Rs 65-75 keeping a PE multiple of 7.

Investor with long term investment horizon of 1 year should invest in the stock at CMP.

 

 

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