POCL ENTERPRISES LTD (539195) - STOCK OF THE WEEK

Dear Investor friends, Today I am expressing my opinion on one metal oxides, Specialized metal products company.

POCL ENTERPRISES LTD (539195)

POCL Enterprises Limited (POEL)  is an ISO 9001:2008 company and specializes in manufacturing and trading of various metals, chemicals and their oxides. The company has manufacturing units in Puducherry (formerly Pondicherry), Kakkalur – Thiruvallur, Maraimalai Nagar, Tamilnadu.

POCL Enterprises initially established in 1988 as a trading house, has over the years after the demerger has had manufacturing processes included.

Company is having four verticals as follows.

1.    Metal Oxides

2.    Plastic additives

3.    Zinc Refining

4.    Lead Alloying

1.    Metal Oxides : Metals like lead and zinc are common elements but are rarely to be found in their native state and generally found in combination with other metals by nature. Oxides are chemical compounds with one or more oxygen atoms combined with another element. Metallic Oxides are basic in nature generally solids and have high densities

2.    Plastic additives: In this category company manufactures PVC stabilizers which are extensively used in RPVC pipes, cables foot wares etc.

3.    Zinc Refining : World-wide use of zinc oxide is in excess of 1.8 million tons annually. On a contained zinc basis the oxide accounts for about 9% metallic zinc. Probably 60% zinc oxide uses secondary zinc, primarily top dross from continuous galvanizing, as the zinc source. Although rubber products and in particular tires are the major use for rubber, there are considerable variations around the world in use patterns. For example, the ceramic market is equally as important as rubber is some areas.

4.    Lead Alloying: Lead is a dense, soft, low-melting metal and has been used in many applications an important component of batteries and about 80% of the world’s lead production is consumed by the battery industry. Lead is the densest common metal and this quality makes it effective in sound barriers and as a shield against X-rays.

APPLICATION OF THE PRODUCTS

1.    LEAD: Company manufactures different oxides of lead, it has got following major applications.

·         Lead is widely used in manufacture of storage batteries, lead oxides and lead compounds.

·        Also used in radiation shielding, solder cable sheathing, alloys and type metal.

·        All types of lead alloys manufactured per customers specifications.

2.    ZINC OXIDES: Company manufactures different purity grades of ZINC, it has got following Industrial applications.

·        Used in varistors, thermal papers,electroplating & dietary supplement in animal feed.

·        Widely used in ceramic, floor tiles, frits & glazes

·        Primarily used as accelerator, activator & reinforcing agent in rubber

3.    LEAD SULPHATES & LEAD DERIVATIVES: These are having following Industrial applications.

·        Primarily used as light and heat stabilizer in PVC formulation.

·        Anti-oxidising and ultra-violet screening for vinyl and chlorinated resins.

·        Widely used in rigid PVC profiles, pipes and PVC compounds. Also used in plastics.

Company website: Clickhere

FINANCIALS AND OUTLOOK

Company shares are trading in BSE.

Promoter holding: 46.98 % as on dec qtr.

Company posted 119.09 Cr top line in sept Qtr.

Net profit is 1.29 Cr bottom-line in sept Qtr.

Operating margins were improved

Stock is trading at Rs 77

Company is mainly engaged in the business lead and other metal oxides derivatives are extensively used in storage batteries and other related industries. As this business will reach to next orbit in near future is having tremendous potential for the growth in the industry.

By considering above, and performance of the company over QOQ investors will get handsome returns in a days to come.

PLEASE NOTE : THIS IS NOT A REASERCH REPORT.

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”