Goa Carbon
Goa Carbon Ltd, a Demp Group company ha’Ang a Marketcap of Rs.78 crores is engaged in manufacturi and selling of Calcined Petroleum Coke (CPC). The company is a supplier to aluminium smelters, graphite elecfrode and Titanium Dioxide manufacturers, as well as other users in the matallurgical and chemical
i ndusfries.
The Company also has 3 plants totaling 240000 ma capacity:
1 .Goa 75000 TPA
2.Bilaspur in Chattisgarh 40000 TPA
3.Paradeep in Orissa 125000 TPA
4.Goa Carbon also manufacires products like Recarburiser, Laddie addive and Carbon raiser. Besides selling its products in the domesbc market, exports are made to Australia, Egypt, Dubai, France, Kuwait Iran, Saudi Arabia, Singapore, Malaysia, Indonesia, Thailand, South Africa, Russia, Wales and England. It has port facilities in Mormugao (Goa) and Paradip Port (Orissa) making exports more cost effecve.
In FY2O11, the company’s topline increased by a mere 6.7 pc to Rs.270 crores but PAT shot up by an
astounding 2141 pc — PATwhich was Rs.0.41 crores in FY10 shot up to Rs.9.19 crores in FY2O11.
The Q2FY12 results were also spectacular — total revenues increased by 118.2 pc to Rs.130.79 crs compared
to Rs.59.94 crs in Q2FY11. PAT increased by 46.4 pc to Rs.2.78 to Rs.4.07 in the stated quarters.
While all this may sound sweet there are a few things that are sour
1. Low net profit margins that fluctuate ‘Mldly betNeen 0.15 pc to 6.6 pc
2. High inventory holding period that’s around 4-5 months
3. High Debt Equity rabo of 2.35
4. But considering the fact that the company pays Rs.4/share as di’Adend, a low PE of 7.08 and EPS of
around Rs.12 and promotors holding of 59 pc, the stock looks interesting.
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