CLARIANT-THE RIGHT CHEMICAL MIX FOR SOLID GAINS

Clariant Chemicals (India) Ltd is a MNC in the business of pigments,Leather chenicals,Textile chemicals,speciality chemicals and other agri intermediates.Recently the company merged Vanavil Dyes,Clariant India and two other companies to form this company.The company is a global leader in most of the products it is involved in.

For the quarter ended June 06 the company recorded a turnover of Rs.230 Crores and a net profit of Rs.15 crores on a equity of Rs.27 crores giving it an eps of Rs.5.5 (not annualised).The company is a zero debt company.Post the merger the company is expected to scale up its operation and also derive down costs due to synnergies in operation.

On an annualised Earnings of Rs.20 the company is today traded at 15 times (current price is Rs.300) which is cheap considering the growth plans and the leadership status of it business.Moreover the chemical outsourcing business is yet to pick pace in India which will happen rapidly over the next few years.The company has a excellent track record of distributing dividends to it shareholders.The parent company holds close to 64% in the Indian company.Buy for long terms gains.