Chemfab Alkalis Ltd

Chemfab Alkalis Ltd
Asc. Triangle: Weekly Basis. Trend Reversal
Price / Vol. BreakOut.
Price Resistance@297. Once crossed, Good to Go till 326.

With Upside, Trail SL
Book Profit as per Risk Appetite

Snapshot
Estab: ‘83. Into Mfg. of basic Inorganic Chemicals, PVCO pipes.
Sep’22: 155 TPD of caustic soda / 6000 MTPA of PVC-O-Pipes.
Produces Chlorine, Hydrogen, Sodium hypo chlorite, Hydro chloric acid as by-products.
Capex: Setting up 250 TPD Caustic soda, Desalination & Aluminium chloride: 10000 TPA) Plant. Completion: Next 3 Yrs. 10,000 TPA. Cost: Rs.450 Crs (D/E: 4:1)
Growing demand from key end-use industries like Textiles, Pulp / Paper, Aluminium, Pharma, Agrochemicals, etc.

Sales / Profitability: Growing on Yrly/Qtrly Basis (Abbr. Sep’22 Qtr/FY21).
RoA/RoE/RoCE: Continued growth on Yrly basis. High C&CE bal.
Nil Debt, Strong TNW, +ve CF from Ops. Since FY17. Improving WC Cycle.
Constant Promoter stake at 73%

Concern:
Subdued results of PVC-O Pipes Div. Cyclical uptrend currently. RM Volatility. Competition from Large Cos.

Do Your Own Research as Well. This is Just an Opinion.
Happy Investing :)
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