Ducol Organics And Colours Limited IPO

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i. Ducol Organics And Colours offers a range of pigment dispersions for various industries like Paints, Inks, Textile, Detergent, Paper, Rubber and Plastics. color solutions for various industries like paints, ink, textile, rubber, plastic, leather, paper, soaps, detergents and FMCG. The Company is engaged in the business of manufacturing and selling of pigment dispersions, preparations, concentrates, paste colorants and master batches.

ii. Ducol Organics have a pan-India customer base, with integrated operations which involves development, manufacturing, marketing and distribution of a wide range of dispersions & masterbatches primarily to industries such as paints, ink, textile, rubber, plastic, leather, paper, soaps, detergents and FMCG.

iii. Their laboratories are well equipped to develop process capabilities and product application techniques. The specialized and dedicated team of professionals and engineers constantly keep abreast with the latest technology and trends as per the requirement of the industry. The development team has a deep understanding of color, color management and dispersion technology.

iv. The company offer following pigment dispersions and preparations:
 Dutint – water based dispersions for decorative paints
 Duplast – MB for plastic industry
 Duprint – water based dispersion for printing ink formulations
 Dutex – pigment pastes for textile printing industry
 Dusperse – for soap and detergent industry
 Dupralin – for paper industry
 Dupren – used in rubber industry
 Ducem – Dry dispersions various general applications

v. They have three (3) manufacturing units situated near Mumbai out of which two (2) are situated at Taloja MIDC and the third is situated at Mahad MIDC.

vi. Competitive Strengths
i. Experienced & Qualified Team:
ii. Product diversification & Wide Product Offering
iii. Diverse Customer Base

Objects of the Ducol Organics And Colours Limited IPO:

The objects of the Net Proceeds of the Issue are: i. Funding working capital requirements of our Company; ii. General corporate purposes
DRHP of Ducol Organics And Colours Limited IPO

Ducol Organics And Colours Limited IPO Details:

Open Date: Jan 09 2023
Close Date: Jan 11 2023
Total Shares: 4,040,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue
Issue Size: 31.51 Cr.
Lot Size: 1600 Shares
Issue Price: ₹ 78 Per Equity Share
Listing At: NSE Emerge
Listing Date: Jan 19 2023

Promoters And Management:

i. Aamer Ahmed Farid, aged 62 years is the Promoter and Managing Director of the Company. He holds a B.Sc. from University of Bombay. He has more than 25 years of experience in pigments industry. He has been the main guiding force behind the growth and business strategy of the Company. He has been a backbone of the Company for identifying, negotiating and implementing new business opportunities. He is in charge of overall sales & marketing function with focus on continuous communication and building relationships with the clients. He plays crucial role in team building and clients addition and retention. ii. Hani Ahmed Farid, aged 66 years is the Promoter and Director of the Company. He holds a B.Com. from University of Bombay. He has also completed his Diploma in Export Management from Xavier Institute of Management. He has more than 25 years of experience in the pigment industry. He looks after the day to day business of the Company and also oversees the Production process. iii. Ratnakar Venkappa Rai, aged 54 years, is an Independent Director of the Company. He has completed his B.Com from University of Bombay in April 1992 and one year Diploma programmed in Business Management from All India Council for Management Studies, Madras in October 1997. He has also been awarded Post Graduate Program in Management Services for undergoing Executive Business Management Program during 2011 to 2013 by WE School (Welingkar Education), Prin. L. N. Welingkar Institute of Management Development & Research, Mumbai, India. He has experience of over 2 decades in the field of liaison, accounts and finance. He has been on the Board since June 1, 2022.  

Financials of Ducol Organics And Colours Limited IPO:

P&L Statement
Particulars (Fig. in Lakhs) 2022 2021 2020
Revenue From Operations 8,799 7,791 7,317
Cost of Material Comsumed 5,529 4,483 4,766
Change in Inventories 75 365 -171
Employees Benefit Expenses 539 422 458
Other Expenses 1,750 1,870 1,849
EBITDA 906 651 415
OPM% 10.30% 8.36% 5.67%
Other Income 95 94 55
Depreciation 112 115 168
Finance Cost 268 290 273
PBT 621 340 29
Tax 129 58 22
PAT 492 282 7
No. of Shares 145.4 145.4 145.5
EPS 3.38 1.94 0.05

Comparison With Peers:

Name of the Company Revenue (in Cr) Profit (in Cr) EPS P/E CMP MCap
Ultramarine & pigments Limited 491 58 19.98 14.4 334 974
Akshrachem Limited 380 16 19.81 21.6 279 224
Vipul Organics Limited 133 7 5.45 30.9 126 161
Sudarshan Chemical Industries Limited 2201 130 18.77 29 387 2,681
Ducol Organics & Colours Limited 88 4.9 3.38 23.08 78 113.4
   

Recommendation on Ducol Organics And Colours Limited IPO:

Review and Recommendation of Ducolor Organics and Color Limited by IZ team is 5/10 1. DUCOL ORGANICS AND COLOURS  is engaged in the business of manufacturing and selling of pigment dispersions, preparations, concentrates, paste colorants and master batches.

2. It supplies pigment dispersions to sectors such as Paints, Inks, Textile, Detergent, Paper, Rubber, FMCG, and Plastics.

3. Their labs are well-equipped to develop process and product applications. Their team of professionals and engineers stay up with the latest technologies and trends in the business. Their development staff knows colour, colour management, and dispersion.

4. They have three manufacturing units situated near Mumbai out of which two are situated at Taloja MIDC and the third is situated at Mahad MIDC. Units I and II of Taluja MIDC are ISO 9001:2015-certified.

5. Types of Products:

a. Dutint water-based paint dispersions.

b. Duplast, a plastics MB.

c. Duprint is a water-based ink dispersion.

d. Dutex textile pigment pastes.

e. Dusperse for soap and detergent.

f. Dupralin for Paper industry.

g. Dupren used in rubber industry.

h. Ducem Dry dispersions for general use.

6. Raw materials: They use Organic and inorganic pigments, additives, glycols, fillers, extenders, minerals, and drums of various sizes as raw material. Most of their raw supplies are domestic.

7. The Revenue has Increased from Rs.73 Crore in FY20 to Rs.88 Crore in FY22.

8. The PAT has Increased from 7 Lakh in FY20 to 4 Crore in FY22.

9. The EBITDA has Increased from 4 Crore in FY20 to 10 Crore in FY22.

10. As per FY22, EPS is 3.37 ,  Market Capitalization is 113 Crore & P/E is 23.09x .

Lead Manager of Ducol Organics And Colours Limited IPO:

  1. First Overseas Capital Limited

Registrar of Ducol Organics And Colours Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Ducol Organics And Colours Limited Office No 302, Express Building, 14-E Road, Churchgate, Mumbai – 400020 Phone: +91 22 4608 2353 Email: ipo@ducol.com Website: http://www.ducol.com

Discussion on Ducol Organics And Colours Limited IPO:

2 Comments

    Ducol Subscription status day 2

    NII 2.84x
    Retail 3.24x

    Total Subscription 3.04x

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    Ducol Organics And Colours Limited IPO subscription status Day 1

    NII 0.82x
    Retail 0.56x

    Total Subscription 0.69x

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