EXCEL INDUSTRIES - BUY

Excel  Industries is a group company of Excel Cropcare Ltd . Selecting this stocks at this point of time mainly on three reasons- improving business prospects of its existing specialty chemical segment,foray into Pharma Intermediates and the vast potential of its non core Enviro-Biotech Division. Company own three production facilities one each at Roha ,Lote  Parshuram( Ratnagiri Dt Maharastra) and Ahmedabad.

                                                                           

Under the specialty chemicals division ,company manufacturing Phosphorous Derivatives,Agro Chemical Intermediaries, Mining Chemicals..etc. Under the pharma intermediates division  ,till now company was mainly in Veterinary API’s but recently set up a new facility for human API’s at its existing Lote site .Products from this new facility is high margin products and expected to drive company’s NPM from current level once the commercial production reaches full swing. The most exciting part is its Enviro Biotech Division .

Financials

 

Company has started posting fairly decent results as profits have up 3 times from last QOQ. Further, their pharma unit is yet to start contributing in it. Hence, there is a very high chance that company will get re-rated from here as well. I am having a aggressive target in this company with the target price of 300+ in a year. Hence, I recommend to buy the stock at the CMP of 191.

courtesy for some content - valuepicks blog.