Since 1961, Camphor & Allied Products Ltd. ( CAPL) has been a pioneer in the field of Terpene Chemistry in India. It established the first Synthetic Camphor plant with technology from Dupont, USA.
CAPL is India's largest manufacturers of variety of terpene chemicals and other speciality aroma chemicals. Our vast product range includes Synthetic Camphor, Terpineols, Pine Oils, Resins, Astrolide, and several other chemicals finding applications in vast array of industries ranging from Flavours & Fragrances, Pharmaceuticals, Soaps & Cosmetics, Rubber & Tyre, Paints & Varnishes and many more.
Camphor and Allied Product is a niche play in Indian Specialty Chemical Segment. It is the largest exporter of specialty aroma chemicals from India . Its product range includes fragrance chemicals such as amberone, pharmaceutical products like camphor and terpineols, aromatic chemicals like citwanene, and industrial chemicals such as alpha pinene.This company taken over by one of India’s largest fragrance manufacturer Oriental Aromatics Limited in 2008 at a price of Rs.167 per share.Using the modern technology of Dupont ,USA CAPL is the largest manufacturer and pioneer in Turpine Chemistry in India. Company’s products are mainly exported to Europe, UK and US for use in flavours, fragrances, pharmaceuticals, soaps, cosmetics, tyres, paints , varnishes...etc.
Not only the status of India’s largest aroma chemicals manufacturer but its new relation with AganAroma & Fine Chemicals which is a subsidiary of Makhteshim Agan Group -an affiliate ofChemChina - ( Chem China is the largest Chinese chemical company ) creating interest in CAPL . As per the agreement with Agan ,high margin products produced at company’s new plant located at Vadodara will be marketed by Agan worldwide . Agan will also provide technology expertise to camphor. Company claiming this is the world’s most advanced plant for manufacturing high margin Musk and related products.Last year company started commercial production from this facility and the recent results of the company speaking for itself.
CAPL is in a niche segment backed with strong support of a world leader but a less researched company by market participants. We expect with major tieups with world leaders company is likely to fetch eyes of big investors and with improved numbers company is likely to trade at higher PE. Hence we recommend to buy this stock with the price target of 480.
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