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excel_monkey
Senior Member
Joined: 17/Nov/2009
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Posts: 1281
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   Posted: 16/Jan/2011 at 9:15pm |
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Even though this one has been a consistent performer in terms of financials
I am not sure if this company can be called as a specialty chemicals company
and why do they publicise that methylamine and ethyl-amine are some sought of complex products when these molecules have been around for decades
it is a small company which could be just wiped out because some Chinese chemicals giants decides to ramp up it amines capacity which Balaji produces
and remember Chinese have cheap debt, cheaper capital and free infrastructure
Chinese don't care about the ROE they want scale
I would be wary of 1-2 product companies
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CHINKI
Senior Member
Joined: 07/Feb/2007
Location: India
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Posts: 2827
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Posted: 16/Jan/2011 at 7:52am |
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I don't know how much you know about this company or whether you have visited this company.
First of all, it is not just two products company. It sells more than 25 products.
Many of their products can not be manufactured by others due to the technology. The best part of this company is that they have developed this inhouse and they produce it in large scale.
Most of the products which they have introduced off late are all import substituted products. So you imagine none of the so call big Indian Chemical Companies does not or do not have technology to do so.
As far as the Chinese imports are concerned, they are good at producing anything in large quantities where quality and technology are not involved.
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TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO
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excel_monkey
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Joined: 17/Nov/2009
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Posted: 17/Jan/2011 at 1:10pm |
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I would not derate Chinese
they are far far ahead of Indians when it comes to innovation and manufacturing
just search for BDY where WB is invested
all I am saying is if a Chinese producer decides to manufacture the products Balaji is manufacturing and we would be all done with the company
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abhishekbasu
Senior Member
Joined: 07/Sep/2008
Location: India
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Posts: 335
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Posted: 17/Jan/2011 at 2:09pm |
Originally posted by excel_monkey
I would not derate Chinese
they are far far ahead of Indians when it comes to innovation and manufacturing
just search for BDY where WB is invested
all I am saying is if a Chinese producer decides to manufacture the products Balaji is manufacturing and we would be all done with the company |
Well, I would not be so sure as well. Like Indian companies, Chinese companies cannot be also painted by one single brush. I have personally done business consulting for multiple companies in China and my experience is that they also have their own set of issues and challenges. What gets highlighted in the Western media is what the media believes the people want to hear. So, I am not so ready to believe that "some" Chinese company will come and destroy the market for Balaji (or any Indian company for that matter). P.S. BYD has not been doing well lately. Its annual growth last year was at 15.5% which is lower than the 32% that the overall Chinese auto makers grew. The company estimates to grow at 10% this year and admits publicly that it needs to improve its product quality. --- ref: Asian Wall Street Journal
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sbkv
Groupie
Joined: 07/Jun/2010
Location: India
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Posts: 42
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Posted: 17/Jan/2011 at 3:55pm |
Originally posted by CHINKI
I don't know how much you know about this company or whether you have visited this company.
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Hmm does this imply CHINKI has visited the plant/management? Could you plz provide some feedback on Management. If prospects are so bullish why has management reduced stake recently? What makes me worry is everyone and his uncle has come out with recommendations on this one ( SP Tulsian, Ashish Chug,etc....) while promoters have reduced stake!
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CHINKI
Senior Member
Joined: 07/Feb/2007
Location: India
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Posts: 2827
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Posted: 17/Jan/2011 at 6:44pm |
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That has happened during second quarter (40,000 shares).
While I donot know the exact reason, my guess could be, Chairman's son has returned from US. Instead of handing over the company on a platter, they wanted him to do something on his own. There was a proposal to start a new factory adjacent to Balaji Amines Factory. I presume, sale may be for that.
We can get the details after their results are out.
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TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO
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excel_monkey
Senior Member
Joined: 17/Nov/2009
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Posts: 1281
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Posted: 17/Jan/2011 at 7:45pm |
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Just checked methanol (a key raw material of balaji) has jumped from 290 to 390
Now at 350
Margins would be poor this quarter
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CHINKI
Senior Member
Joined: 07/Feb/2007
Location: India
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Posts: 2827
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Posted: 17/Jan/2011 at 8:02pm |
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Increase in raw material prices would definitely have an effect on their margins.
While they have passed on the increase in RM partially to their customers plus the increase in high margin products should offset that impact to some extent.
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TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO
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