Fundamental Analysis

ASAHI SONGWON COLORS 

Ticker : 532853
BUY : Rs 229.90
Target : Rs 255

Asahi Songwon Colors Limited is engaged in the business of manufacturing and export of colour pigments. It is a manufacturer of phthalocyanine pigments and derivatives in India. The company’s manufacturing facilities are located at Padra (Vadodara, Gujarat) with an installed capacity of around 11,400 tonnes per annum. On the standalone quarterly front, the net sales came in at Rs 57.82 crore in Q1FY21, down by 29.31 per cent from Rs 81.79 crore in the same period for the previous fiscal year. In Q1FY21, the operating profit was Rs 11.01 crore, up by 54.56 per cent from Rs 7.13 crore in Q1FY20. Net profit expanded to Rs 9.53 in Q1FY21 from Rs 5.38 crore in the corresponding quarter for the previous fiscal year, showcasing a growth rate of 77.24 per cent. Despite the current business environment, the company has reported encouraging quarterly numbers and improving fundamentals. Thus, we recommend a BUY.