About the Company
BHAGERIA INDUSTRIES LIMITED was established in 1989.Company commenced its operations by setting up a Vinyl Sulphone Plant at Vapi (Gujarat) with capacity of 540 T.P.A. which has now expanded to 3600 T.P.A. Subsequently Company has gone for further expansion in other Dyes intermediates & Dyestuffs.
Nearly 70% of its production is being exported worldwide to various clients including multinationals in countries like Korea, Japan, Taiwan, China, Germany, U.S.A & European and African countries. Today Bhageria Industries Limited is one of the largest Manufacturer & Exporter of Intermediates and Dyes in India.
The business activities of the group can be classified as follows:
- Manufacturing and exporting of Dyes and intermediates.
- Sourcing and exporting various pharmaceutical products (APIs and FFs).
- Sourcing of various Bulk chemicals
Source : http://www.bhageriagroup.com/profile.htm
Financials FY16 : A Bird’s View
- Revenue : INR 238 crore
- Operating Profit : INR 26 Crore
- Net Ptofit : INR 15 Crore
Financials (Historical Trends): Some Insights
- · Compounded Annual Sales Growth Rate has been as below –
o 3 Years = 23%
o 5 Years = 31%
o 7 Years = 31%
Company has shown a consistently high rate of growth in sales, but has experienced headwinds recently.
- Profit After Tax has grown by a CAGR of 28% for last ten financial years
- Operating Profit Margin has gradually grown from 7% in FY07 to 17% in FY16
Growth in Sales has been accompanied by commensurate growth in not only profits but profit margins as well.
- · Tax Outgo has been a little volatile been varying between 28-32% for last five financial years
- · Return on Capital Employed is more than 18% for last three financial years
- · Except for one FY, Return on Equity has been > 23% for last five financial years
Company is regularly generating good level of profits for its shareholders
- · Company’s Receivable Days has come down from 97 in FY’08 to 64 in FY’16
- · Except for last FY, there is a consistent rise in Fixed Turnover Ratio, 2.78 in FY’10 to 5.14 in FY’15
Alongwith financial parameters , operational parameters are also improving with each FY.
- · Share Capital is constant for last ten years
- · Dividend Payout Ratio is more than 10% for last five financial years
Management /Promoters are honest and committed towards retail and non-promoter shareholders
- · Total Debt has come down from 428 crores in FY’08 to 303 crores in FY’16
- · Debt/Equity Ratio has come down from 1.3 in FY’08 to 0.2 in FY’16
- · Interest Coverage i.e. ability to serve interest has grown from 1.2 in FY’08 to 12.1 in FY’16
Company has an excellent ability to serve its debt in addition to bringing down debt regularly
- · Price to Earnings ratio has increased from 4.8 in FY’08 to 19 in FY’16
- · For Every Rupee of Retained Earnings of last 10 years, company’s market cap has increased by 6.05
Atul Ltd has been highly successful in generating wealth for its shareholders