Dujodwala Products Limited - BUY NOW!

Business: Today I bring up another star player in field of Commodity chemicals & Resins – DUJODWALA PRODUCTS LIMITED – a pioneer in the field of Rosin and Terpene Chemicals. Based out of Maharashtra, DPL changed gears a couple of years back & forayed into producing variety resins – comes out to be the Game changer for the company which has been inflating its bottom-line and earnings exponentially Q over Q. DPL has its own indigenous state-of–art production plants equipped with most modern machinery and test laboratory facilities to meet the toughest norms of international quality controls. They produce Camphor derivatives, pine oils, Rosin, Turpentine oil derivatives and a range of Resin variants covering the following potential big markets:
- Pharmaceuticals / Pesticides
- Adhesives/Paints/Benzon
- Perfumery products / Pooja & Aarti products / Agarbathis / Nail polishes / varnishes
- Tyres / Rubber
- Textile / Leather derivatives
- Printing Inks
… & many more industries.. the list is endless.. the market reach & base is infinite …
Financials : The company has posted a Trailing Twelve Months - TTM EPS of 8.36 (whopping 1200% up from FY09) with a topline of 145.8 crores and Profit of 7.21 crores (whopping 1300% from FY09). The company continues to grow zooming northwards declaring mind-blowing June10 Q results (believe me !!) – an EPS of 5.23 (compared to 0.76 last FYQ1). Going forward, considering infinite addressable market and strong earnings growth, this company seems heading straight for an annualized EPS of more than 15 this FY itself. At current price of 57 Rs – you don’t have to think twice .. DPL is seriously undervalued and available at a PE of less than 4. The stock is a SURE SHOT BUY!!
Positives – The company has a strong SHP which increased from 41% to 44% now in last 4 years – you see that promoters are very confident about future performance & growth.
- Paid up equity capital has not increased in last 2-3 years.
- DPL has reach in almost every business vertical & in a country of 120 crores population you can easily imagine the horizontal demand explosion.
- This stock is recession proof.
Negatives – There are a few competitors in the organized sector.

Conclusion : The stock has a decent run so far this year to reach 54-58 levels. Time to HURRY UP to buy DUJODWALA PRODUCTS LIMITED at current levels before DII & FII start investing. Beyond doubt, this stock has the potential to double in next 6-7 months duration visualizing an EPS of 15+ on a conservative basis this FY. If the company continues to perform well as shown by its profits & earnings, the stock is a long term hold.