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camphor & allied - sweet fragrance

Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Stock Synopsis
Forum Discription: A bried discussion of companies on very specific matters. Normally this is the prelude for further research as always members would be discussing quality companies with good management only
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=2830
Printed Date: 21/Apr/2025 at 4:20pm


Topic: camphor & allied - sweet fragrance
Posted By: jstk
Subject: camphor & allied - sweet fragrance
Date Posted: 18/Jun/2010 at 1:54pm
file:///C:%5CUsers%5Cjayendra%5CAppData%5CLocal%5CTemp%5Cmsohtmlclip1%5C01%5Cclip_colorschememapping.xml -

file:///C:%5CUsers%5Cjayendra%5CAppData%5CLocal%5CTemp%5Cmsohtmlclip1%5C01%5Cclip_colorschememapping.xml - - Camphor & Allied Products Ltd ( BSE Code: 500078/ not listed on NSE)

Industry: Terepene Chemistry

Products: fragrance chemicals & fragrance chemicals intermediates

User industries: Flavours & Fragrances, Soaps & Cosmetics, Pharma, Rubber & tyres, paints & varnishes

Equity Capital: 5.13 cr

Debt: 18.77 cr

Dividend: has not skipped dividend since the last 8 years

Camphor & Allied has 2 manufacturing plants : Baroda ( Gujarat ) & Bareilly (UP) besides a R&D set up set on a sprawling 20 acre complex in Baroda.

2008-09

file:///C:%5CUsers%5Cjayendra%5CAppData%5CLocal%5CTemp%5Cmsohtmlclip1%5C01%5Cclip_colorschememapping.xml - -  

file:///C:%5CUsers%5Cjayendra%5CAppData%5CLocal%5CTemp%5Cmsohtmlclip1%5C01%5Cclip_colorschememapping.xml - - Sales : 135 cr

file:///C:%5CUsers%5Cjayendra%5CAppData%5CLocal%5CTemp%5Cmsohtmlclip1%5C01%5Cclip_colorschememapping.xml - -  

file:///C:%5CUsers%5Cjayendra%5CAppData%5CLocal%5CTemp%5Cmsohtmlclip1%5C01%5Cclip_colorschememapping.xml - - PBT : 7.8 cr

file:///C:%5CUsers%5Cjayendra%5CAppData%5CLocal%5CTemp%5Cmsohtmlclip1%5C01%5Cclip_colorschememapping.xml - -  

file:///C:%5CUsers%5Cjayendra%5CAppData%5CLocal%5CTemp%5Cmsohtmlclip1%5C01%5Cclip_colorschememapping.xml - - NP : 3.7 cr

file:///C:%5CUsers%5Cjayendra%5CAppData%5CLocal%5CTemp%5Cmsohtmlclip1%5C01%5Cclip_colorschememapping.xml - -  

file:///C:%5CUsers%5Cjayendra%5CAppData%5CLocal%5CTemp%5Cmsohtmlclip1%5C01%5Cclip_colorschememapping.xml - - EPS : Rs.7.20

file:///C:%5CUsers%5Cjayendra%5CAppData%5CLocal%5CTemp%5Cmsohtmlclip1%5C01%5Cclip_colorschememapping.xml - -  

file:///C:%5CUsers%5Cjayendra%5CAppData%5CLocal%5CTemp%5Cmsohtmlclip1%5C01%5Cclip_colorschememapping.xml - - Dividend : Rs.1.50

file:///C:%5CUsers%5Cjayendra%5CAppData%5CLocal%5CTemp%5Cmsohtmlclip1%5C01%5Cclip_colorschememapping.xml - -  

file:///C:%5CUsers%5Cjayendra%5CAppData%5CLocal%5CTemp%5Cmsohtmlclip1%5C01%5Cclip_colorschememapping.xml - -  

file:///C:%5CUsers%5Cjayendra%5CAppData%5CLocal%5CTemp%5Cmsohtmlclip1%5C01%5Cclip_colorschememapping.xml - -  

file:///C:%5CUsers%5Cjayendra%5CAppData%5CLocal%5CTemp%5Cmsohtmlclip1%5C01%5Cclip_colorschememapping.xml - - 2009-10 :

file:///C:%5CUsers%5Cjayendra%5CAppData%5CLocal%5CTemp%5Cmsohtmlclip1%5C01%5Cclip_colorschememapping.xml - -  

file:///C:%5CUsers%5Cjayendra%5CAppData%5CLocal%5CTemp%5Cmsohtmlclip1%5C01%5Cclip_colorschememapping.xml - - Sales : 166 cr

file:///C:%5CUsers%5Cjayendra%5CAppData%5CLocal%5CTemp%5Cmsohtmlclip1%5C01%5Cclip_colorschememapping.xml - -  

file:///C:%5CUsers%5Cjayendra%5CAppData%5CLocal%5CTemp%5Cmsohtmlclip1%5C01%5Cclip_colorschememapping.xml - - PBT : 16 cr

file:///C:%5CUsers%5Cjayendra%5CAppData%5CLocal%5CTemp%5Cmsohtmlclip1%5C01%5Cclip_colorschememapping.xml - -  

file:///C:%5CUsers%5Cjayendra%5CAppData%5CLocal%5CTemp%5Cmsohtmlclip1%5C01%5Cclip_colorschememapping.xml - - NP : 10.24 cr

file:///C:%5CUsers%5Cjayendra%5CAppData%5CLocal%5CTemp%5Cmsohtmlclip1%5C01%5Cclip_colorschememapping.xml - -  

file:///C:%5CUsers%5Cjayendra%5CAppData%5CLocal%5CTemp%5Cmsohtmlclip1%5C01%5Cclip_colorschememapping.xml - - EPS : Rs.19.95

file:///C:%5CUsers%5Cjayendra%5CAppData%5CLocal%5CTemp%5Cmsohtmlclip1%5C01%5Cclip_colorschememapping.xml - -  

file:///C:%5CUsers%5Cjayendra%5CAppData%5CLocal%5CTemp%5Cmsohtmlclip1%5C01%5Cclip_colorschememapping.xml - - Dividend : Rs.1.50

file:///C:%5CUsers%5Cjayendra%5CAppData%5CLocal%5CTemp%5Cmsohtmlclip1%5C01%5Cclip_colorschememapping.xml - -
Promoter Company profile:

Oriental Aromatics, an unlisted, closely held company (they bought 32% from earlier promoters (Dalal's) @ 167 per share early 2008 & followed it up by buying 20% public shareholding at the same price.

Oriental Aromatics is promoted by Anil Bodani & operations are run by him and his two sons. It has a unit catering to domestic markets in Daman & an EOU in Mangalore. It manufactures fragrances & flavours for various end applications such as soaps/detergents, cosmetics, scented candles, packed foods, confectionery, pharma.
It has equity capital of 4 cr, approx revenue & np of approx 65 cr & 13 cr respectively in 2008. Net wroth a year back was approx 80 cr.

Anil Bodani is a trained perfumer who started his career in 1958 and sharpened his skills with Antoine de Chris SA, in France

Worldwide Flavour & Fragrance industry market is around USD 20 billion of which the top 3 (Givaudan sales : USD 3.9 billion/ 19% market share, Firmenich sales USD 2.5 billion, 12.2% market share, IFF : sales 2.4 USD , 11.8% market share) control about 43% market share. Another 30% is controlled by the next 7 companies. The top 3 have already set up India operations. Worldwide, though cut throat competition exists due to flattish sales since the last 2 years, the industry thrives on innovation.

Of the top 10 market shareholder, 5 are Europe based, 3 US based & the balance 2 from Japan
Though the world market has been shrinking, the Indian market has shown consistent growth and it is likely that other companies from the top may also look at Indian presence.

It must be noted that the above MNC's are much ahead in the value chain compared to Camphor & Allied as they manufature not only aromatic chemicals but also 'create/innovate' fragrances / flavours. It is however important to keep in mind that Oriental Aromatics has a strong franrance/flavour portfolio

At the current price of Rs.102 ( market cap: 52 cr), Camphor & Allied offers a fair investment opportunity.

p.s: I hold



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If you buy for a non-value reason, you will end up selling for a non-value reason.


Replies:
Posted By: hit2710
Date Posted: 18/Jun/2010 at 2:45pm
Originally posted by jstk


At the current price of Rs.102 ( market cap: 52 cr), Camphor & Allied offers a fair investment opportunity.


Hi,
Any other company in India with which it can be compared?
And growth prospects? What kind of growth do you expect?
regards,
hitesh.

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Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart.

Posted By: karn
Date Posted: 18/Jun/2010 at 2:54pm
Ohh I have missed this one. I thought it was de listed. Need to get it demated.

Posted By: 9StockPortfolio
Date Posted: 18/Jun/2010 at 3:31pm
When people become more religious then Camphor will be utilized in the daily prayers. Thus the rise in demand. I don't know their other products but camphor we use religiously




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Pursuit of Value

Posted By: prabhakarkudva
Date Posted: 18/Jun/2010 at 4:01pm
Why is it even paying a dividend when it can use that money to pay off debt?



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Take your chances and keep them in a box until a quieter time.

Posted By: msjala
Date Posted: 19/Jun/2010 at 7:36pm
Very Stupid question
An year ago, I find this stock hovering around 70 Rs.
Right now, it is quite near to 52 week high.

What is in this business makes this a value buy?




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Thanks,
Jala.

Posted By: jstk
Date Posted: 21/Jun/2010 at 5:54pm

my basis of investment is that the Indian perfumery market is at a very nascent stage but  set for significant growth at a rate faster than GDP.

Camphor & Allied is the only listed company largely focussed on Aromatic chemicals ( used in flavours / fragrances ) of different varieties. It's parent, Oriental Aromatics  is a well known exporter of flavours & fragrances to some of the best known brands worldwide.

most of the top 10 worldwide  flavours & fragrances companies have set up shop in india for production . So the overall market for aromatic chemicals will show steady growth over the next few years and Camphor & Allied will reap good dividends from the same.



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If you buy for a non-value reason, you will end up selling for a non-value reason.

Posted By: mohitrathi8
Date Posted: 22/Jun/2010 at 1:24pm
Originally posted by jstk

my basis of investment is that the Indian perfumery market is at a very nascent stage but  set for significant growth at a rate faster than GDP.Camphor & Allied is the only listed company largely focussed on
Aromatic chemicals ( used in flavours / fragrances ) of different
varieties. It's parent, Oriental Aromatics  is a well known exporter of flavours & fragrances to some of the best known brands worldwide.most of the top 10 worldwide  flavours & fragrances companies have set up shop in india for production . So the overall market for aromatic chemicals will show steady growth over the next few years and Camphor & Allied will reap good dividends from the same.



What kind of perfumery and which top 10 cos are we talking about?

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Good stocks can go down for no reason. Bad stocks can go up for no reason.

Posted By: vinvestor2010
Date Posted: 22/Jun/2010 at 2:19pm
Hi just a query
Wont a perfume company have pretty tough competition.
-From FMCG Deoderants in the cost sensitive category
-Hi end perfume chains in the premium category.
Sorry didnt mean to raise a stink, but hope you think about it Wink

Posted By: Market Maniac
Date Posted: 22/Jun/2010 at 1:25am
CAGR FY05 - 09: n = 5 years
 
Sales - 16%
PAT - 35%
Divident - -
Fixed Assets - -
Inventory - 18%
Sundry Debtors - 12.6%
Current Liabilities & Provisions - ( -9.7%)
Net Current Assets - 18%
Total Assets - 8%
 
New Management took over from mid 2008, approx. 2 years back.
 
CMP = 100/-
M.Cap. = 51.36Cr
FY10 EPS = 19.95/-
PE - 5x
BV = 127/-
P/BV - 0.78x
RoE - 16%
Debt - 18.77Cr.
Networth = 65Cr.
D/E - 0.29
DPS - 1.5/-
Yield - 1.5%
Payout - 8%
 
Now, RoE:
 
Old Management:
 
FY05 - 4.5%
FY06 - 0.6%
FY07 - 3%
FY08 - 1%
 
New Management:
 
FY09 - 6.7%
FY10 - 15.7%

Posted By: Market Maniac
Date Posted: 17/Aug/2010 at 2:50am
Camphor at 150/-

Posted By: jadeja17
Date Posted: 18/Aug/2010 at 11:59pm
I recently read up most of jstk's picks and think he is one of the best stockpickers around on this blog, and has scored a big hit with this latest pick as well.  Real talent lies in uncovering unheard of stocks, as Peter Lynch mentioned.

I am following stock pickers on this forum one by one and having finished basantji's my investing strategy, feel it is a must read for all teddies.

I am pretty impressed with the stocks discussed in this forum.

Posted By: TCSer
Date Posted: 22/Aug/2010 at 1:37pm
Is this stock still  buy at these prices?

Posted By: ashokmehta
Date Posted: 23/Aug/2010 at 12:50pm
Heard from the market that a big investor is buying the stock in small quantities since last many months and a bonus is expected by the company.
 
These are just rumours and don't ever make your investment decisions based on pure rumours and make your due diligence before investing.
 
-Ashok
 
 
Originally posted by TCSer

Is this stock still  buy at these prices?


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Make efficient use of time while investing hard earned money and make efficient use of money while spending valuable time.

Posted By: TCSer
Date Posted: 28/Aug/2010 at 1:27am
Any further updates on this ? 

Posted By: Market Maniac
Date Posted: 29/Aug/2010 at 4:02am
Bonus news is False

Posted By: Market Maniac
Date Posted: 05/Oct/2010 at 6:24pm
Camphor at 200/-

Posted By: Market Maniac
Date Posted: 09/Feb/2011 at 2:00am
Now Operators have taken over this scrip.


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