INDIAN TONERS & DEVELOPERS LTD (523586) - STOCK OF THE WEEK

Today I am expressing my view on one Specialty chemical sector stock.

INDIAN TONERS & DEVELOPERS LTD (523586)

Indian Toners & Developers Ltd. is India’s largest manufacturer and exporter of compatible toners for use in laser printers, the new age digital machines, multi-function printers, analogue copiers as well as wide format printers and copiers. Indian Toners & Developers Ltd. also offers premium quality chemical color toner products for use in laser printers and copiers. Indian Toners formed a subsidiary by the name of ITDL Imagetec Limited which became operational in 2009. While the manufacturing plant of the parent company i.e. Indian Toners is located in Rampur (U.P.), the manufacturing facility of its subsidiary, ITDL Imagetec, is located at Sitarganj (Uttarakhand).

Indian Toners manufactures world-class products using the best raw materials sourced from world-renowned manufacturers. The quality and performance of toner powders manufactured at Indian Toners, is at par with OEM standards. Purchasing compatible toners Indian Toners is a big cost saving opportunity for customers, as the customer gets high quality products at a low price. 

The company has a strong sales team of more than 100 field personnel along with its regional offices in Delhi, Mumbai, Kolkata & Chennai. ITDL Imagetec Ltd. has a widespread distribution network with around 70 distributors present in every nook and corner of the country. ITDL caters to around 500 dealers, more than 800 refillers and 44000 jobbers present in all parts of the country.

All the raw materials used by Indian Toners are sourced from world-renowned manufacturers based in Japan, Germany, USA and Korea. Indian Toners is an ISO 9001:2008 & ISO 14001:2015 certified company.

ITDL  have 20+ years of experience in toner manufacturing and are the largest exporters of toner from India. Recognizing our achievements, the Government of India has been awarding us with the “Excellence in Export Performance” award every year since 2002.

Company mainly manufactures following Toner inks.

1. Chemical Colour Toner

2. Lase Toner 

3. Digital Toner

1. Chemical Colour Toner.

  

Today's consumers are more aware of their environmental footprint. Chemically Produced Toners are more environmental friendly as compared to conventional toner produced by the pulverizing method. It is said that Chemically Produced Toner results in lower CO2 emissions (as much as 1/3rd of conventional toner) and also produces about 30% less Volatile Organic Compounds (VOCs).

Indian Toners & Developers Ltd offers world-class chemically produced compatible color toners for use in laser printers and the new digital copiers for various models of major brands like HP.

The compatible toners manufactured by ITDL Imagetec Ltd covers a broad range of products from the older analogue copiers to the new age digital machines & MFP’s. The quality standards are at par with OEM.

This products mainly for HP Printers.

2. Laser Toner.

Indian Toners & Developers Ltd, a leading manufacturer of compatible toners, manufactures a wide range of high quality compatible laser toner products for use in all the popular brands present in various countries. The compatible toners offered by Indian Toners can be used in the light duty printers (slow speed) as well as the heavy duty and larger printers (high speed). The quality standards are at par with OEM.

ITDL Imagetec Ltd. products are sold under the “SUPREMO”, “Formula-L” as well as the “ITDL COLOR PREMIUM” brand names. 

This products are mainly for below printers.

             HP®| SAMSUNG®| BROTHER®| KONICA MINOLTA®| PANASONIC®|

3. Digital toner

This Products are mainly for below printers.

CANON®| KYOCERA MITA®| RICOH®| KONICA MINOLTA®| XEROX®| TOSHIBA®| SHARP®| SAMSUNG MULTIFUNCTION

 Company is having In house Renewable energy source.Solar Power which caters to power to the manufacturing facility.

RESEARCH & DEVELOPMENT 

Research and Development has been the corner stone of ITDL’s success. Great emphasis is given to the experience and expertise of all the dedicated professionals in every department in order to maintain our privilege standing with our valued customers.

ITDL has up- to-date R&D lab well equipped with the requisite scientific analytical instruments like Multisizer III, Tribo Tester, Fluxmeter, Densitometer, TREK Instrument, Melt Flow Indexer, DSC, TGA and apparatuses for measuring powder flow, fusing quality, DC resistivity etc. plus a host of precision electronic balances. Above all, the R&D efforts are backed by a full fledged dedicated Pilot Plant comprising broadly of Pre Mixer, Compounding, Milling and Classification machinery of German / Swiss origin. Environmental Test Chamber to conduct testing of toners in different temperature/humidity conditions. Further, supported by technical assistance from Japan and USA and feedback from customers help us to continuously expand and improve our product range to meet the ever-emerging needs of the market. We are committed to the development of latest toners, to help our customers have the first mover’s advantage in the market.

                                            

In a nutshell, ITDL researches, develops, formulates and manufactures world-class toners for the analogue / digital photocopiers, laser printers and multifunction reprographic machines. It is a feather in our cap that the Department of Science and Industrial Research, Ministry of Science & Technology, Government of India, recognizes our R&D. 

Company is participating many of the exhibitions to attract more customers across globe.

New products.

LEXMARK® T 650/652/654 (650)

LEXMARK® TS 810, MS 711/811, MX 710/711/810/811/812 (MS-810)

RICOH® AFICIO MP 6000/7000/8000/7001/8001

CANON® IR-4025/4045 (NPG 56/57)

TOSHIBA® ESTUDIO 457/257/307/357/507 (TYPE T-5070 P)

CANON® IR ADV 6055/6065/6075 (NPG-54)

CANON® IR ADV 8105/8095/8085 (NPG-53)

HP 18A

HP 33A

KONICA MINOLTA® BIZ HUB 283/363

CANON® IR-2002/2202 (NPG 59)

Company Website :Clickhere

Company shares are trading in BSE.

Promoter holding in company 49.53 %

Company posted 8.03 Cr top line in Dec Qtr.

Operating Margin 23.17 % 

Net profit is 1.21 Cr in Dec qtr.

Stock is trading  low PE 14  as compared to industry PE of 24.

Debit free company.

Stock is trading at Rs 162.

As Company products are most commonly used which is like day to day consumables. Company has very strong customer base for customized brands. ITDL has has recently launched new products which are widely used for new model of famous printer brands like HP, CANON, TOSHIBA,SAMSUNG etc. This is huge positive for the stock. This stock will be a multibagger in future.

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”

SHILP GRAVURES LIMITED (513709) - PORTFOLIO STOCK

Today I am expressing my view on one stock from industrial machinery/Flexible packaging segment stock

SHILP GRAVURES LIMITED (513709)

Shilp Gravures is India's pioneer and undisputed leader in Electro-Mechanical Engraving, with a substantial market share of the flexible packaging industry.

Electro-Mechanical Engraving is a precision technology, and Shilp Gravures has assimilated the world's best equipment and infrastructure available in the field at its plant.

The company has focused all its activities and quality pursuits around that core knowledge that at the end of it all, it is part of a marketing / branding exercise. So, Shilp Gravures plans every job from the creative stand point.

And that is the core mantra that has empowered Shilp's rapid growth, and given it the confidence to visualize a global activity charter for the immediate future

Shilp Gravures began operations in 1989 as an Engraving house with chemical etching facility.It had inherent cutting edge, having founded by a team of technocrats led by the visionary Ambar Patel.In 1993, Shilp put up state of art electromechanical engraving facility.In the years that followed Shilp upgraded its technology by investing in best of the machinery and software.

Shilp Gravures is India's pioneer and undisputed leader in Electro-Mechanical Engraving, with a substantial market share of the flexible packaging industry.

Electro-Mechanical Engraving is a precision technology, and Shilp Gravures has assimilated the world's best equipment and infrastructure available in the field at its plant.

The company has focused all its activities and quality pursuits around that core knowledge that at the end of it all, it is part of a marketing / branding exercise. So, Shilp Gravures plans every job from the creative stand point.

And that is the core mantra that has empowered Shilp's rapid growth, and given it the confidence to visualize a global activity charter for the immediate future.

COMPANY PRODUCTS

Company products fall mainly into 5 segments.

1. Gravure Cylinders

2. Flexo

3. Base Shell

4. Pre- Press

5. Embossing.

1. Gravure Cylinders.

Shilp offers first time in India following Gravure cylinde in one roof. There are four products in this category.

Electro-Mechanically engraved , Mechanically Engraved, Chemically Itched and Laser Technology.

Flexo Technology is one of the Premium products of Shilp.

Shilp flexo plate processing unit is equipped with DuPont Cyrel 2001P, one of the world’s finest digital plate processors producing plates of up to 42x60 inch / 106x152 cm – becoming the first to produce this size which is the largest available in South Asia. The machine itself is a complete inline processor with exposing, punching, processing, drying and cutting operations. 

Esko Suite 7 based work flow clubbed with the digital imager CDI ensures global quality output ideal for label and packaging industries. While an Esko BG 3800 image setter provides direct film output of 800 mm x 1100 mm (31.5 x 43.3 inch) size. a consultant also provides UV coating plates, embossing blocks, letterpress plates, etc.

Base Shell  is one of the traditional products of Shilp.

Shilp pursuit of excellence, desired quality levels of rollers could only be achieved if the raw material is of set parameters.

The quality of the steel rollers plays an important role in the subsequent processing and its performance on the printing machine From the quality of the cold extruded carbon steel seamless pipes to the hardness required.

Uncomparably, hi-tech & sturdy in-house infrastructure, includes hacksaw and bend saw metal cutting machines, lathe machines, cylindrical balancing machines, As well as high precision measuring instruments fir final quality check.

Pre Press

The designs in any digital format are colour-corrected on latest graphic software under high-end Pre-press shop from EskoArtwork, To ensure precision. This powerful combination of technology and expertise helps us to reproduce designs comparable to any around the globe.

Embossing

This segment contains embossed rollers.

APPLICATION OF THE COMPANY PRODUCTS ARE FOR FOLLOWING INDUSTRIES

Company Website :Click here

OVER VIEW

Company shares are trading in BSE.

Promoter holding in company 60.52 %( Increased from Dec Qtr)

Company posted 16.69 Cr top line in March qtr.

Operating Margin 16.51 % 

Net profit is 1.70 Cr in March qtr.

Stock is trading  low PE 11.8  as compared to industry PE of 26.

Dividend (%) last year 12 %

Reducing Debit company.

Stock is trading at Rs 124.

Stock is seems to be undervalued as compared to its peers. Company’s flexible packaging division is doing well as compared to previous qtr. As the allied customer group of the companies are growing in growth phase, this stock will show the same growth .Considering this, stock will give good returns to the investors in near future.

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”

NARMADA GELATINES LIMITED (526739) - STOCK OF THE WEEK

Today I am expressing my view on one Specialty Chemical stock.

NARMADA GELATINES LIMITED (526739)

Narmada Gelatines Ltd. (Erstwhile Shaw Wallace Gelatines Ltd) was set up in 1961. The company is strategically located in the Central Indian State of Madhya Pradesh and has convenient access to its main and essential inputs of crushed bones, acid, lime and good quality water.

Narmada Gelatines Ltd., has pioneered the manufacture of ossein and gelatin in India and is today a frontrunner in India's Gelatine Industry meeting exacting standards of various users worldwide.

ABOUT GELATINE

Gelatine is one of the most versatile biological products with a wide range of physical and chemical properties. It is a natural animal protein composed of various essential amino acids required for human nutrition.

Gelatine is derived from the selective hydrolysis and extraction of protein collagen found mainly in the connective tissues of animals.

Collagen is the principal organic component of animal bones. In India bovine bones, are the conventional raw materials used in gelatine manufacture. The formation of water soluble gelatine may be regarded as hydration and hydrolysis of collagen. Gelatine molecules represent various sized units, each a fragment of the collagenous chain.

COMPANY PRODUCTS

Narmada Gelatines manufactures mainly 4 grades of Gelatines.

1. Pharmaceutical

2. Edible

3. Industrial

4. Photographic

1. Pharmaceutical

Gelatine is virtually indispensible in the Medical and Pharmaceutical field and is specifically processed for extensive use in hard capsules, soft capsules, micro capsules, tablets and other coating applications.

A unique process has also been developed to provide gelatine suitable for use in the manufacture of intravenous plasma extenders. Its application as blood substitute infusions during extreme life risk situations is invaluable. The gelatine used in these are made so that its decomposition after administration takes place completely without leaving any residue and without imposing strain on any particular human organ.

2. Edible

Gelatine is very extensively used in the edible preparations the world over. It offers the following unique and unrivaled set of excellent characteristics.

* Gelatine is a very easily digestible protein.

* Gelatine is a pure and natural food protein 

* Gelatine containing most of the amino acids essential for human nutrition.

* Gelatine is added to other foods to increase the protein content.

* Gelatine is food product in its own right, is absolutely safe for human                consumption.

3. Industrial

The manufacture of several coated and bonded abrasives including industrial grinding wheels use gelatines specially made suitable for high bonding of silicon carbide and aluminium oxide grains.

Other extensive applications include use in the manufacture of extra hard printer rollers, cork compositions and water dispersible pesticides. We also manufacture protein colloids for defence usage for making ball powder.

4. Photographic

Gelatine is extensively used in photography. Gelatine is more than just a bonding agent for the light-sensitive silver salts and together with these, it forms the photographically active emulsion. This is probably the most important factor in the use of gelatine for photography. At Narmada Gelatines Ltd, ensure that the manufacturer gets the best clarity & sharpness of image on his films and X-ray rolls.

In the dark room the gelatine allows chemical substances that are necessary for photographic developing to penetrate sufficiently into the emulsion, and in a similar way it allows these solutions to be washed away after developing.

PRODUCTION FACILITY

Production facility involves following process.

 EXTRACTION

Gelatine is extracted after acidulation, Maturation & Washing. It is extracted in stages. The initial extracts are obtained at low temperatures and have the highest gel strengths. Subsequent extracts are made in stages of higher temperatures. The process technology perfected by the company ensures complete and total extraction of the gelatine.

PURIFICATION
The Gelatine solution obtained from the extraction process is subjected to intense filtration and ion exchange. This ensures effective removal of physical and chemical impurities.
DRYING
The concentrated gelatine solution is solidified and a continuous flow of jelly noodles are produced. These noodles are evenly spread on a continuous band drier. The drying operation is systematically controlled with filtered, washed, pre-dried and sterilised air. The dry gelatine is mechanically reduced into uniformly granular sizes.

GRINDING, SIFTING & MIXING

Depending upon the end use requirement and specification the dry gelatines are transformed into consistent despatchable material. Various high speed mills and large capacity blenders are used depending on specific requirements at this stage

Company website : Clickhere

Company shares are trading in BSE. Promoter holding in company 75 %.

Company posted 28.5 Cr top line in Dec qtr.

Operating Margin 3.9 % 

Net profit is 0.65 Cr in the Dec qtr.

Stock is trading  low PE 19  as compared to industry PE.

Dividend (%) last year 40 %

Debit free company.

Book value of the stock Rs180.

Stock is trading at Rs 130.

Stock is trading below its Book value. Company products are mainly multipurpose like pharma,edible , industrial etc. As the related sectors are growing fast and more and more edible grade products are produced from gelatines like Jelly toffees etc which is gaining market significantly. Above all are positive for the stock.This stock will give good returns to the investors in near future.

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”