Fine Org
Very fine performance
YoY Rev at 617cr vs 322cr⬆️91%
QoQ Rev at 617cr Vs 463cr⬆️33.2%
FY Rev at 1876cr vs 1133cr ⬆️65.5%
YoY PAT at 122cr vs 32cr⬆️281%
QoQ PAT at 122cr Vs 52cr⬆️134%
FY PAT at 260cr vs 120Cr⬆️117%
Q4 EPS at 39.7 Rs vs 10.3 Rs
FY22 EPS at Rs. 84.7 vs 39.2
✓ OCF 68 Cr Vs. 133 Cr in YoY⬇️ OCF down due to poor debtor realization
✓EBITDA margin: 25.8% Vs. 14.9% in YoY Vs. 18.6% in QoQ,
✓EBITDA margin: 25.8% Vs. 14.9% in YoY Vs. 18.6% in QoQ,
✓EBITDA: INR 159 Cr Vs. 48 Cr in YoY Vs. 80 Cr in QoQ
✓ PAT Margin: 19.7% Vs. 9.6% in YoY Vs. 16.1% in QoQ
✓ Current PE: 49, Forward PE: 30
✓ ROE: 27%, ROCE: 25%, ROA: 24%
✓ Debt/Equity: 0.05 Vs. 0.14 (Continuously improvement)
Highlights:
✓ Co has an in-house R&D centre with strong capabilities. The company’s in-house product innovations, product applications and engineering improvements helps it cater to the market’s needs and gain an edge over other global players.
✓ Diversified customer profile no customer accounting for more than 5% of the overall sales. Fine's client/customer base includes companies like Coca-Cola, Britannia, Asian Paints, Parle, Pidilite etc.
✓ Higher capacity utilization for all of its plants. Strong robust financial profile.
✓ Recommended a final dividend of Rs. 9/- (Rupees Nine only) per equity share of Rs. 5/- each fully paid up for the financial year ended March 31, 2022.
Opportunities:
✓ Fine Organic is the largest manufacturer of oleochemical-based niche additives in India. It is among the six largest global players in polymer additives and among leading global players in specialty food emulsifiers.
✓ Shifting from synthetic chemical to Oleo chemicals: Demand for oleo-chemicals are increasing as they are green additives and environment friendly
✓ Strong Promoter holding 75%, FIIS: 7.2%, DIIS: 11.6%
✓ Reducing debt continuously and virtually debt free company.
View: Strong show. EBITDA increased by more than 1000 bps in this quarter as compare with YoY and 720 bps in QoQ. Current position is good to hold and any decline will be good opportunity to add for mid to long term perspective.
