BSE Code: | NSE Code: | ISIN: | Sector:
Research Report Detail
|Report Date||Call||Price@Call||Target Price
|Current Status||Time Horizon|
|Target Hit|| Long (1Y)
HDFC Securities maintains buy on Kiri Industries
Industries Limited (KIL) is one of the largest manufacturers and
exporters of wide range of dyes, intermediates and chemicals from India.
KIL has seen an operational turnaround on a standalone basis on account
of the surging prices of the dye intermediates comprising of 69% of
company's revenues due to reduction in heightened competition from
Chinese players and moving up of the value chain by KIL. Apart from this
turnaround in the operational performance of the company, KIL has
indulged in serious debt reduction efforts which has brought down the
debt of the company by around 46% in FY16 and further by 40% in FY17.
Company's JV with Dystar is performing reasonably well and has
contributed positively to its EPS for the past three years and is
expected to continue the same with good prospects for reactive dyes and
direct dyes globally. Also, the company expects to unlock the value in
its associate company as a result of the suit filed in Singapore.