Lords chemicals

Originally Posted by grapes

CMP 20.65
Promoters have increased their stake from 40% to 71% during the quarter ende JUNE 2012---kINDLY EXPRESS YOUR VIEWS

Lords Chemicals has debt of little over 11 Crores with cash in hand of 2 Crores ... Debt levels are high, which causes huge fluctuations in stock price ... Recent quarter results are good though ...

Even if you buy, don't hold for ever and book profits on highs ... It is a little risky, so don't invest too much into it ...

Cheers!
Mani

Thanks for the insights

Lords Chemicals is a leading Indian manufacturer of basic industrial chemicals like Sodium Dichromate, Chromic Acid, Chrome Oxide Green etc. It is a business group of the Mahabir Coke Industries and operates lucratively from its headquarters in Kolkata, West Bengal since 1998. Lords has in its tenure of over a decade earned itself the reputation of being a leader in not only the domestic but also the global markets. The chemicals produced here confirm to international standards of quality and modes of production and find application in a multitude of industries.

Owing to its technological edge and the expertise of its diligent workforce of vast employees, Lords Chemicals has become one of the leading producers of Sodium Dichromate through the use of Continuous Rotary Kiln Process. This chemical is used in a variety of applications like pigments, wood preservation, metal treatment, pharmaceuticals, etc.
Sales during the last 5 years have moved up from 22cr to 68cr and NP from 0.63 to 1.16cr.Net profit margin has gone up from 0.86 to 2.64.Though debt is on a higher side, the enhancement of stake by 30% in just one quarter indicates the the confidence reposed by the management inthe company.