The first in the country to introduce Pollution-free Membrane Cell Technology which became the trendsetter in the Chlor-Alkali Industry, the company had done surprisingly well in Q1FY13 and its performance in Q2 has only got better, In Q1, it had turned around on a YoY and in Q2, it posted a 156.14% in its net profit at Rs 4.79 crore v/s Rs.1.87 crore in Q2FY12. Its total income has increased by 6% at Rs 26 crore. The point to be noted here is that for FY12, it had posted a net profit at Rs.7.47 crore and its net profit in current H1 at Rs.10.24 crore, is already 37% higher than that of entire last fiscal.

The company has little or no debt as its interest outgo for FY12 it was at Rs.16 lakh. Its biggest expense is on power and fuel costs. Its equity is tiny at Rs.4.59 crore, and its EPS for H1FY13 was at Rs.22, discounting the current price less than 3 times. No new caustic soda plants are coming up and that is the main reason which drives the price, though it has been weak for some time now. Worldwide the membrane cell technology represents about 20% of production and nearly all new investment are in chloralkali production. The stock remains weak given the complete unpredictability of the business and that explains the low discounting.