September 24, 2016 . Equities Desk

Dresen acquisition to boost the revenue growth
Camlin Fine Sciences Ltd. (CFS) is one of India’s leading manufacturer & exporter of food grade antioxidants and industrial performance chemicals. In FY16, CFS derived maximum 56% of its turnover from Antioxidants followed by Performance Chemicals (22%) and others (Diphenols, Aroma chemicals) (22%).

Valuation & View

We expect revenue and PAT to grow at a CAGR of 29.2 & 38.5% respectively over FY16-19E. Further, EBITDA margin is expected to improve by 20bps on account of increasing volumes in downstream products coupled with the commencement of Dahej plant. Hence, we initiate CFS with a BUY rating with a TP of Rs.106 based on 11.5x FY19E EPS.

Research Report Camlin Fine Sciences Ltd

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