CAMEX LIMITED :524440 : A value pick at CMP of Rs 29

Camex Ltd, specialist in Textile & Leather Dyes is. It is one of the pioneer in manufacturing Dyestuffs in India.Camex today has setup a state of art manufacturing facilities and has a complete range of Textile & Leather Dyestuffs, Auxiliaries, Dye-Intermediates, and Pigment Dispersions in there Product Portfolio.

Camex has global presence in more than 45 countries world wide.

Camex's main manufacturing facility is located at Ankleshwar, a hub for Dyes & Chemical manufacturers in India. It is well developed & easy accessible Industrial area located 250km north of Mumbai on the main Mumbai-Ahmedabad route. The plant has the capacity of manufacturing 8000MT/PA of dyestuffs which includes full range of Reactive, Acid and Direct dyes.

Year	2017-E	2016	2015	2014
Revenue	103	101.57	146.7	221.38
Other Income	1	0.26	0.15	0.03
Total Income	104	101.84	146.85	221.4
Expenditure	-99	-98.03	-140.96	-214.78
Interest	-1.6	-1.71	-3.05	-3.16
PBDT	3.4	2.09	2.84	3.47
Depreciation	-0.76	-0.71	-0.7	-0.62
PBT	2.64	1.38	2.15	2.85
Tax	-0.59	-0.46	-0.73	-0.94
Net Profit	2.05	0.92	1.42	1.92
Equity	10.21	10.21	10.21	10.21
EPS	2	0.9	1.39	2.57

The Indian dyestuffs and pigments industry has transformed from being import dependent to export driven industry. Developed countries are now focusing on sourcing dyestuffs and pigments from cost effective Asian Markets. Exports have grown in double digit over the last few years. The Indian Dyestuffs industry meets more than 95% of the domestic requirements. The size of world Dyestuff industry is estimated at US$ 6 billion and is growing at about 2.7%. China is the largest manufacturer of dyes followed by India.

The Global colorant industry is valued at US $27 Billion and has been growing at 2.7% p.a. The decline of traditional producers in the developed world, particularly in Europe, and the simultaneous ascent of new ones in Asia, particularly India and China, is arguably one of the most significant changes ever seen in the industry. The shift has been quite swift and followed the migration of end-user industries notably textiles and leather – to low cost economies of Asia.

With rising environment concern in China lot of big chemical industries are going to close which shall be  boon to Indian chemical industry.

Target Price:

Camex has book value of Rs 22 and market cap of 29 crores , expected EPS of 2 for year 2017-18 so stock is available at forward PE of 14 based upon expected EPSwhich is slightly expensive but if we look at other bigger players in similar sector they command much higher PE in comparison.

In lieu of above positive factors Camex has potential to improve top line and bottom line in future.

Long term investor may buy this potential multibagger at CMP of Rs 28-29 having very low risk of going down and with enormous potential of creating new peaks in next 1-3 years.