Pondy Oxides

Pondy Oxides is one of India's leading metallic oxides and plastic additives producers. It has broad based operations, manufacturing of Zinc oxide, Lead sub Oxide, Litharge Red lead and solid and liquid stabilizers of PVC.  These products are used in battery industries and automobile sector. The company has an around 30% market share in the plastics additives segment. The company posted very good numbers for Q1FY15 and went on to better then further in Q2. It posted a 27% (YoY) rise in net sales at Rs.163 crore and a 84% jump in net profit at Rs.2.25 crore. It has three segments – metal, metal oxides and plasic adhesives. Metal contributes 73% to net sales, oxides 20% ad adhesives 8%. In current Q2, metals showed a good 4% growth in revenue but it was the five times rise in EBIT of oxides which pushed up the bottomline.

The company has ended H1FY15 with a net profit of Rs.4.26 crore which has surpassed FY14 net profit of Rs.3 crore, which means the company has a big year ahead, given the two more quarters. Equity stands at Rs.11.15 crore and annualized EPS (Rs.10 face value) is at Rs. 5, discounting the current price by 11 times. Promoters stake is at 51.99% and there neither any FII nor DI stake. Market cap stands at Rs.60 crore.