Vadivarhe Speciality: A micro-cap stock to watch

In June 2017, Ramesh Damani bought 99,000 shares of Vadivarhe Speciality for ₹89 lakhs, or ₹90 per share.

Vadivarhe Speciality Chemicals Ltd (VSCL), established in 2009, is a manufacturer of Organic Chemicals with a core focus on intermediates, personal care products, speciality chemicals and APIs.

VSCL is ISO 9001:2015 certified company by Quality Systems Zurich. It has also received WHO-GMP Certificate for its manufacturing, marketing & supply of API’s and intermediates. The manufacturing facility is located at Vadivarhe, Nashik.

VSCL entered into an agreement with Enaltec Labs in 2012 to manufacture API products for them for a period of 10 years based on the material and specification provided by them.

Clients:
Some of its major clients are GSK Pharma, Fine Organics UK, Chem-Impex International, D C Fine Chemicals, USV, Lupin, Mankind Pharma, Himedia Laboratories, Hetero Labs & many others.

VSCL is a supplier of personal care ingredients to Fem Care Pharma and other market leaders.

Management:
Mr. Sunil Haripant Pophale is the promoter of VSCL.

Mr. Sunil has 36 years of experience in brand building and manufacturing of personal care products. He holds a B.Tech from IIT, Mumbai.

Fem Care Pharma was promoted by Mr. Sunil which was later taken over by Dabur in 2009.

Mr. Sunil sold Fem Care Pharma to Dabur, and speciality chemical division of Fem Care Pharma was transferred to VSCL.

Risks:
– API’s and speciality chemical industry is highly competitive
– VSCL derives 90% of its revenue from top 5 clients
– VSCL is highly dependent upon the growth of the chemical and pharma industry

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s