INDOKEM LTD (504092) - STOCK OF THE WEEK

Dear Investor friends, Today I am expressing my view on one Specialty chemical stock.

INDOKEM  LTD (504092)

Indokem limited is an ISO 9000 & ISO 14000 company established in 1946, it was one of the first company's in India to recognize a growing trend towards the textile industry and has since been a leader in the market of textile dyes and chemicals. Since its inception the company has laid a heavy emphasis on supplying products of the highest quality and ensuring the customer's needs are met.

Indokem was the foremost name in Dyes in India , it was only in the 1980's that the company began to venture into other areas of the textile processing industry, namely sizing chemicals, a collaboration with a well reputed American company, Seydel, gave Indokem its start in sizing chemicals.

In addition Indokem also began producing certain auxiliaries at the request of major customers, although this was not the prime focus at the time, over the years Company have gained experience and added a lot of man power both at the factory and on the field. Refnol is the sister company of Indokem, catering  India's growing sizing chemical market.

PRODUCTS

Company mainly focusing on three segments in the business.

1. Dyes

2. Sizing Chemicals

3. Textiles auxiliary

1. Dyes

Dyes are produced through a series of chemical reactions under highly controlled environments, originally the colour for the dye was extracted from natural substances, as the industry has grown the industry has gone beyond natural extraction and started producing the colours chemically to cope with the vast growth seen in the dye and colour industry.

It is used to impart colour to textiles, paper, leather, and other material such that the colouring is not readily altered by washing, heat, light, or other factor to which the material is likely to be exposed.

Indolene is the Polyester dye produced by the company.

Indocryle is the dyes for fibres.

Indacid is for Nylon/silks.

Indasyn is for wool.

2. Sizing Chemicals

The process of applying the protective adhesive coating upon the yarns surface is called sizing. Sizing is done by applying various types of size ingredients on the warp yarns. This is most important process to attain maximum efficiency and reduce the warp breakages in weaving process.

Polyvinyl alcohols are unique copolymers developed especially for use as warp sizes for polyester/cotton blends and other spun yarns. Alone, or in combination with starch and additives. Advantages of polyvinyl alcohol are as follows:

High Weaving Efficiency

Low Add-On

Low Weave-Room Humidity

Excellent Size Bath Stability

Ease of Desizing

Economically Recoverable and Reusable 3. Textile Auxiliaries  Textile wet-processing enhances the appearance, durability and serviceability of fabrics by converting grey or greige goods, into finished consumers' goods.  Various stages of wet-processing, involve treating greige goods with chemical baths namely pre-treatment, dyeing and finishing bath. The chemicals used in these baths are termed as 'Auxiliaries'. Indokem provide a complete range of auxiliaries for wet-processing of textiles. Company website: Clickhere FINANCIALS AND OUTLOOK Company shares are trading in BSE. Promoter holding in company 70.92 % Company posted 25.12 Cr top line in June Qtr. Net profit is 0.22 Cr bottom-line in June Qtr. REDUCING DEBT COMPANY Debt to equity is 0.14 Stock is trading at Rs 34 Company is mainly engaged in the business manufacturing of different types of Dyes & Textile sizing chemicals. As this segment is evergreen segment and company performing well in this segment. As the Textiles auxiliary products are gaining moments in this time is a huge boost for the company. Textiles & dyes business are booming nowadays hence the company also do well in the near future. Considering above and performance of the company stock will give handsome returns to the investors in coming days. NOTE : THE ABOVE IS NOT A RESEARCH REPORT NOR A RECOMMENDATION  BUT INFORMATION AS AVAILABLE ON PUBLIC DOMAIN.  Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”