DCW Ltd - CMP 28 rs ,some observations
1- CPVC - its only manufacturer of CPVC resin with capacity of 1000 MTPA( Meghmani and Grasim both are coming up with CPVC manufacturing capacity in next 2 yrs)provisional anti-dumping duty announced on 26th August 2019

has resulted into improvement in demand and average realisation improvement in demand and average realisation ,current capacity utilization of CPVC resin is 100%
2- SIOP- now 40% capacity utilization The SIOP segment turned profitable in 1HFY21
Both SIOP and CPVC contributed to 31% to the company’s EBITDA in 9month (FY20: 18%, FY19: 5%).
3-The PVC segment turned profitable and reported segment EBITDA of INR 650M with margins 14.5% (1HFY20: EBITDA loss of 11 million, FY20: EBITDA loss of INR109 million, FY19: INR166 m
mainly on account of a surge in PVC resin prices,
4- Caustic soda and soda ash segment profitability likely to remain subdued and i am not very much optimistic on this commodity business
5-Current revenue of specialty chemical - around 14% and company is focusing on increasing
with current capacity revenue share can increase up to 25-30% of total revenue
6-Balance sheet is stretched The interest coverage (EBITDA/gross interest expense) at 1.5x in 1HFY21 (FY20: 1.4x, FY19: 1.6x) and net leverage (net debt/EBITDA) at 3.8x
7- Kotak special situation fund recently infused 410 cr in DCW in the form of Debentures
8- From existing capacity total 1800-1900 cr turnover can come ( FY 20 1277cr)
9-Over 2,000-acre land at Sahupuram facility provides
easy scale-up opportunity for specialty chemicals
and PVC without incurring additional
capex for land
10-Clientele
Capacity

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GSFC Some Facts -
1- Its a Government company with mcap of around 5000cr
2-Its having Debt of only 35 Cr with Deposit of 1000 Cr
3-Its investment value
GNFC -almost 3 cr shares X437=1300 cr
Guj Ind power 2.23crX 85=189 Cr
GACL 16 lacX = 107 cr

Guj
https://t.co/v6Yk7U34AA corp 9 lacX6.8=63 lac
Gujarat Gas 4.7 CrX=2968 cr
Bandhan Bank 11.35X284 =32 cr
IDBI 5.5 lacX 44= 2.4 cr
MCFL 5.8 lac X 76= 4.4 cr
Total value of investment =4700 Cr

Production capacity of Its plant for Various products + Methanol plant plus Melamine plants


Major Raw Material
Rock phosphate
Ammonia
Benzene
Phosphoric acid
sulfur

Expansion-
1-ammonium sulphate 4th plant of 400 metric tonnes capacity - Revenue estimated 230 Cr
2- sulphuric acid, fifth plant. 600 metric tonnes per day for captive consumption.

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