Ultramarine & Pigments

Ultramarine & Pigments Ltd having a Marketcap of Rs.125 crores specializes in the manufacture of Inorganic Pigments, Organic Surfactants and Dry Mix Detergents with international quality standards equivalent to those of the global leaders. Today it is one of the largest Pigment and Surfactant manufacturing companies in the world servicing prominent Polymer, Personal Care, Specialities and Cosmetics companies worldwide.

The company generates annual turnover in excess of Rs.120 crores. In FY2011, the company generated a turnover of Rs.121.78 crores and a Net Profit of Rs.17.02 crores. In the earlier fiscal of FY2010, the company generated revenues of Rs.108.50 and PAT of Rs.10.78 crs. The promoters stake in the company is 48.94 pc and Institutional holding is a miniscule 0.85 per cent.

The company has an Equity base of Rs.5.84 crores and as at end fiscal 2011, the company had Rs.14.8 crores Cash and Investments to the tune of Rs.19 crores.ROE and ROCE is around 14 and 21 pc respectively. The company enjoy good working capital management backed by a high Interest cover of around 18 due to a a very low Debt Equity ratio of just 0.04 – its on the verge of being debt free.

Considering the virtual dominant position of the company in the Inorganic Pigments, Organic Surfactants and Dry Mix Detergents segments and the fact that company generates a dividend yield of 6.88 per cent, PE being 7.48 and EPS of around 5.83, the shares of Ultramarine & Pigments Ltd seems to look good.