Stock Views on CLARIANT CHEMICALS, EXCEL CROP CARE, ADITYA BIRLA CHEMICALS

ADITYA BIRLA CHEMICALS

Aditya Birla Chemicals is a 51% arm of Hindalco Industries with a 5% stake held by other promoter group entities. It is a leading producer of inorganic chemicals, such as caustic soda, chlorine, hydrogen and their derivatives. It has a history of generating strong cash flows resulting in a debt-free position by March 2010 end. During FY05-FY10 period, its sales grew at a CAGR of 15.5% while profits grew at 18.1%. The firm's results in the four quarters of 2010 were exceptionally superior to the year-ago period because of write-backs to the extent of 14 crore, which may not be available in future.

 

CLARIANT CHEMICALS

Clariant Chemicals, a 63% arm of Germany's Clariant, is India's leader in specialty chemicals. It has divested a few of its noncore businesses. In 2009, it sold flexible laminating adhesives business followed by disposing of its diketene and intermediate businesses in 2010. In August 2010, it has approved the sale of its land at Balkum, Thane, for a total consideration of 240 crore. In 2010, it seems to have run into a phase of stagnation, due to the sale of businesses. Its revenues grew 5.8% and net profit rose 3.9% in 2010. It has raised dividends to 30 per share in 2010, which is 5% dividend yield on its current market price.

 

EXCEL CROP CARE

Excel Crop Care is an agrochemicals company. Over the past five quarters ended December 2010, it has posted a decent growth in its financials with September 2010 quarter being the strongest, showing the maximum growth. In FY10, Excel witnessed a 6% fall in annual revenue at 620 crore on slackening exports due to unfavorable climatic conditions in the geographies it operates in. However, the company holds a positive outlook for the current fiscal. During the first three quarters of FY11, Excel Crop Care has already achieved a turnover of 564 crore that indicates the company will post double-digit growth for the current fiscal (FY11) against the previous year.