DYNAMIC INDUSTRIES LTD (524818) - STOCK OF THE WEEK

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

DYNAMIC INDUSTRIES LTD (524818)

Dynamic industry started its operation in 1989. Company mainly manufacturing in Dyes & intermediates. Situated at Gujarat Industrial Development Corporation (GIDC), Vatva, Ahmedabad, India, the product palette of Dynamic Industries primarily includes acid, direct and reactive dyes, which, by them, are a benchmark in quality. It is the unsurpassable technology adopted at the laboratory, outstanding infrastructure and the best of the personnel for monitors, which enable an optimum production in terms of quality as well as magnitude of Dynamic Industries. Company gracefully accept our responsibility towards Nature, for the same we have installed Pollution Control Equipments at our premises.

 Company kept expanding ever since as an organisation and in terms of production capacity. DIL introduced the spectrometer in 1993 and in 1994 started manufacturing acid dyes, 1-1 and 1-2 metal complex dyes. Company  became a Public limited company in 1995 with equity of Rs 3 Crore. We opened a new production facility in 1999 and have kept progressing ever since.

DIL mission is to  provide the most cost effective Dyestuffs and its by-products by the combinations of the special expertise in the field and sharp entrepreneurial instincts contained within the organisation having low over heads. Vision mainly to become the pioneers in synthetic organic dyes and setting benchmarks on the continuous path of success and to realise cost effectiveness along with client satisfaction. 

Company is one of the biggest textile dye stuff exporters in India dedicated to producing quality dye stuffs and chemicals and is serving the chemical industry world since last two decades. We are also have the best environmentally managed facility in the country.

MANUFACTURING FACILITY

DIL is having Two maunufacturing facilities in Ahmedabad GIDC area. Company mainily manufactures Acid Dyes &  Direct Dyes

ACID DYES

A dye is a colored substance that has an affinity to the substrate to which it is being applied. The dye is generally applied in an aqueous solution, and may require a mordant to improve the fastness of the dye on the fiber.

Both dyes and pigments are colored because they absorb some wavelengths of light more than others. In contrast to dyes, pigments are insoluble and have no affinity for the substrate. Some dyes can be precipitated with an inert salt to produce a lake pigment, and based on the salt used they could be aluminium lake, calcium lake or barium lake pigments.

An acid dye is a dye which is a salt of a sulfuric, carboxylic or phenolic organic acid. The salts are often sodium or ammonium salts. Acid dyes are typically soluble in water and possess affinity for amphoteric fibers while lacking direct dyes' affinity for cellulose fibers. When dyeing, ionic bonding with fiber cationic sites accounts for fixation of colored anions in the dyed material. Acids are added to dyeing baths to increase the number of protonated amino-groups in fibers.

Company manufactures Different grades of acid Dyes in RED, BROWN, VIOLET, BLACK, BLUE,YELLOW ETC.

DIRECT DYES

Direct or substantive dyeing is normally carried out in a neutral or slightly alkaline dye bath, at or near boiling point, with the addition of either sodium chloride (NaCl) or sodium sulfate (Na2SO4) or sodium carbonate (Na2CO3). Direct dyes are used on cotton, paper, leather, wool, silk and nylon. They are also used as pH indicators and as biological stains.

Company manufactures Different grades of Direct Dyes in RED,VIOLET, BLACK, BLUE  ETC.

DIL strive to achieve the highest quality standards and to ensure that we use proper technology & trained staff to develop better products and have appropriate documentation and service capabilities competent with global standards as relevant to the products.

Company also committed to comply with requirement of ISOQAR & ISO 9001 standards and UKAS Quality Management standards in order to maintain their certifications. We also continuously improve the effectiveness of our Quality Management System for the benefit of our customers & ease of our own work.

Company Website : Clickhere

OUTLOOK

Company shares are trading in BSE. Promoter holding in company 49.9%

Company posted 11.52 Cr top line in March qtr.

(QoQ increased 42.4%)

Net profit is 0.48 Cr in the March qtr.

(QoQ increased MORE THAN 10 TIMES!!! 0.48 Cr from 0.048 Cr)

YOY topline increased to 27.2% (45.88 Cr vs 36.05 Cr)

YOY Net profit increased to 39.06% (1.78 Cr vs 1.28 Cr)

EPS 5.88

Company reducing debt.

Stock is trading low PE 14 as compared to industry PE & its peers.

Book Value Rs 72.41

Stock is trading at Rs 68.

Company is trading below its book value. DIL has posted stellar performance both in Top line & bottom line. Company products are widely used in Textiles & related sector. Which is booming sector in coming days. Company is doing very well in Export business also. This will be positive for the stock, this stock will give handsome returns to investors 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”