Chemical manufacturers having good potential

Going through number of chemical manufacturing companies, I found two interesting companies having good growth potential.

1. Kanoria Chemicals and Industries
2. Aditya Birla Chemicals

Kanoria Chemicals and Industries

This company is into Alco Chemicals, Chloro Chemicals, Water Treatment Chemicals, Industrial Gases. Kanoria is a consistent dividend paying company with Div Yield of 4.5%. This is going to set up a Greenfield fully integrated Alco Chemicals Complex in stages at Jawaharlal Nehru Pharma City, Visakhapatnam for which it has already acquired land admeasuring 29.7 acres. In First Stage it is setting up Formaldehyde Plant with an installed capacity of 105,000 tpa, Hexamine Plant with an installed capacity of 5,600 tpa with an estimated Capital Outlay of Rs. 72 crs. This plant is going to get commissioned in Q2FY’2010.

Other important parameters:

Market Cap  187.75 crs
Yearly Sales ~430 crs
EPS (TTM)   4.97
P/E      6.71
P/C      2.76
Book Value     46.20
Div Yield(%)     4.50
Face Value     5.00  
Industry P/E     10.5
Debts     347 crs 

Aditya Birla Chemicals

A reputed company belonging to Birla's. Aditya Birla Chemicals, the Rs 2560 crore chemicals business of the Aditya Birla Group, is based in India, Thailand and China. The range of products includes chlor-alkali, epoxy, fluorine chemicals, peroxides, phosphates, sulphites and phosphoric acid. The stock is available at very less PE of 3.41. Apart from this check the following parameters.

Market Cap      206.85 crs
Yearly Sales 240 crs
EPS (TTM)      25.97
P/E      3.41
P/C      2.56
Book Value 128.58
Div Yield(%)     1.70
Industry P/E     10.53
Debts     46.17 crs

You can decide what to buy considering these parameters.

Disclosure:  I do not hold any of the stocks.