Short Thread on #Primo Chemicals from Recent Earnings note i was going through during weekends,
decided to share it openly other than my closed circle group
decided to share it openly other than my closed circle group
(1/n) #Primo Chemicals formerly know as Punjab Alkalies
Mrkt Cap : 1500CR
CMP : 64.90
Into the business of chemical manufacturing
Product Portfolio
Caustic Soda Lye
Hydrochloric Acid
Hydrogen Gas
Liquid Chlorine
Sodium Hypochlorite
Stable Bleaching Powder
Mrkt Cap : 1500CR
CMP : 64.90
Into the business of chemical manufacturing
Product Portfolio
Caustic Soda Lye
Hydrochloric Acid
Hydrogen Gas
Liquid Chlorine
Sodium Hypochlorite
Stable Bleaching Powder
(2/n) Installed Capacity : 500 TPD
Expansions done recently :
Capacity expansion from 300 TPD to 500 TPD
Launched Stable Bleaching Powder with
capacity of 33,000 MTPA in Jan 2023
Plans & Projects in Pipeline
Commissioning of Caustic Flakes plant in Q2 FY24.
β’ Commissioning of Aluminum Chloride project in Q2FY24
(Environmental clearance from Punjab PCB received).
β’ Acquisition of Flow Tech Chemicals (manufacturer of
Chlorinated Paraffin and Hydrochloric Acid) remaining 51%
stake.
β’ Capacity Expansion from 500 to 600 TPD
β’ Launching of new products such as Paracetamol API
(Environmental clearance received) and Hydrogen Peroxide.
β’ Received consent from Punjab PCB to operate a captive 35 MW
Power Plant which will reduce the cost of production
Expansions done recently :
Capacity expansion from 300 TPD to 500 TPD
Launched Stable Bleaching Powder with
capacity of 33,000 MTPA in Jan 2023
Plans & Projects in Pipeline
Commissioning of Caustic Flakes plant in Q2 FY24.
β’ Commissioning of Aluminum Chloride project in Q2FY24
(Environmental clearance from Punjab PCB received).
β’ Acquisition of Flow Tech Chemicals (manufacturer of
Chlorinated Paraffin and Hydrochloric Acid) remaining 51%
stake.
β’ Capacity Expansion from 500 to 600 TPD
β’ Launching of new products such as Paracetamol API
(Environmental clearance received) and Hydrogen Peroxide.
β’ Received consent from Punjab PCB to operate a captive 35 MW
Power Plant which will reduce the cost of production
(3/n) Key Triggers :
1) Experienced Management - Run by a team of 8 who are experienced more than 20 yrs
2) Proper roadmap and plans for capex & margin expansion
3) 32 active Chlor-Alkali Units in India , Main products of Chlor-Alkali industry are basic raw
materials for other industries like Caustic Soda - used
in Alumina, Paper & Pulp, Soap, Textiles, Detergents,
pharmaceuticals industries
4) Caustic Soda industry is expected to see steady
growth in the coming years, driven by increasing
demand from various industrial and consumer
applications
5) Global Caustic Soda market expected to reach 87.3
million metric tons by 2027
6) The industry is expected to benefit from the
government's efforts to promote domestic
manufacturing and the expansion of the chemical
sector through the implementation of new
technologies and research and development
7) Change in promotors
1) Experienced Management - Run by a team of 8 who are experienced more than 20 yrs
2) Proper roadmap and plans for capex & margin expansion
3) 32 active Chlor-Alkali Units in India , Main products of Chlor-Alkali industry are basic raw
materials for other industries like Caustic Soda - used
in Alumina, Paper & Pulp, Soap, Textiles, Detergents,
pharmaceuticals industries
4) Caustic Soda industry is expected to see steady
growth in the coming years, driven by increasing
demand from various industrial and consumer
applications
5) Global Caustic Soda market expected to reach 87.3
million metric tons by 2027
6) The industry is expected to benefit from the
government's efforts to promote domestic
manufacturing and the expansion of the chemical
sector through the implementation of new
technologies and research and development
7) Change in promotors
(4/n) Downsides
1) Oversupply due to new capacities and domestic
prices impacted due to Chinaβs participation, thereby
reduced quantum of exports from Gujarat
2) Prices of Caustic Soda are influenced by international
prices as well as domestic demand supply factors
β’ The prices of raw material is affected by the global
disruptions in supply chain such as natural disasters or political instability
Invest in time, Patience & money
Disclaimer : Kindly consult your Financial Advisor before buying / Selling any shares.
This analysis is only for educational purposes and not recommendations.
Happy Investing !!
1) Oversupply due to new capacities and domestic
prices impacted due to Chinaβs participation, thereby
reduced quantum of exports from Gujarat
2) Prices of Caustic Soda are influenced by international
prices as well as domestic demand supply factors
β’ The prices of raw material is affected by the global
disruptions in supply chain such as natural disasters or political instability
Invest in time, Patience & money
Disclaimer : Kindly consult your Financial Advisor before buying / Selling any shares.
This analysis is only for educational purposes and not recommendations.
Happy Investing !!
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