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Thursday, April 11, 2013

Strong Buy!!: ARKEMA to buy 25% stake in Jayant Agro Subsidiary

Arkema (Paris:AKE) and Jayant Agro have signed a joint venture agreement whereby Arkema will acquire a stake of some 25% in Ihsedu Agrochem, a subsidiary of Jayant Agro, specializing in the production of castor oil. This joint venture aims to develop castor oil production in order to provide Arkema with long-term secure and competitive access to this strategic raw material for the manufacture of its biosourced polyamides.

Jayant Agro is a leading producer of castor oil and derivatives. Its subsidiary Ihsedu Agrochem has been the pioneer of the castor oil industry in India and has an experience of over 60 years in the processing of castor seeds into oil. It has been one of Arkema's main suppliers from the outset.
Arkema is one of the leading players in the castor oil sector with the manufacture of its biosourced specialty polyamides 10 and 11. The world's sole producer of polyamide 11 for almost 60 years, in 2012 the Group acquired Chinese companies Hipro Polymers and Casda Biomaterials - respectively producers of polyamide 10 and sebacic acid from castor oil -, thereby bolstering its world leading position in biosourced specialty polyamides.

This joint venture with Jayant Agro therefore falls in line with Arkema's strategy to secure the supply of a key raw material in order to support the development of its bio-sourced specialty polyamides in fast growing applications, such as innovative materials for lighter vehicles and oil & gas extraction.
The project should be finalized in the 3rd quarter 2013.

A global chemical company and France's leading chemicals producer,Arkema is building the future of the chemical industry every day. Deploying a responsible, innovation-based approach, we produce state-of-the-art specialty chemicals that provide customers with practical solutions to such challenges as climate change, access to drinking water, the future of energy, fossil fuel preservation and the need for lighter materials. With operations in more than 40 countries, some 14,000 employees and 10 research centers, Arkema generates annual revenue of ?6.4 billion, and holds leadership positions in all its markets with a portfolio of internationally recognized brands.

Jayant Agro-Organics Ltd. (JAOL) is a public listed company, traded on Bombay Stock Exchange ltd (BSE) and the National Stock Exchange of India ltd (NSE). It is the leading the Castor Oil and Castor Oil based derivative manufacturer in India with a turnover of over ? 250 million. JAOL has the widest range of Castor Oil based chemicals and specialty chemicals in the world. Its Research and Development Centre is focused on developing new products and applications based on Castor Oil and its derivatives - delivering much more than molecules, converting the molecules to products for markets and turning ideas into solutions.


Investor Relations:
Sophie Fouillat, +33 1 49 00 86 37
sophie.fouillat@arkema.com
or
Jérome Raphanaud, +33 1 49 00 72 07
jerome.raphanaud@arkema.com
or
Press Relations:
Sybille Chaix, +33 1 49 00 70 30
sybille.chaix@arkema.com


Arkema buy of Casda and Hipro was at more than 1 times sale.. of both companies.. Jayant has sales close to 1800cr and current markep cap is just 139cr (cmp 92.5)
link to casda and hipro buy 

Archive of Jayant Agro related articles in this blog

Conclusion: We are all in it..!!  Jackpot!! as they say.. Just Buy and Buy!!!



15 comments:

Kalpesh said...

thnx for u valuable info...hv been trackin this stock n done investmnts..stock was up by abt 10-15% aftr this news...waiting for more such findings.. thnx..

What'sUp Prahalad said...

Kalpesh ji:

I think Superhouse is great company to buy at below 50 bucks..

Aptech is quoting at 221cr and has 100cr cash in hand and zero debt..(with rakesh jhunjhunwala as promoter its worth considering..)

TransgeneBiotek also looks interesting..(though quality of company is poor..)

Also Sugar companies are worth buying dont know which one..but watching dalmia sugar

"haryana capfinance" where Mr Bakshi from MDI Gurgaon has a stake..

Some food for thought!!

=happy investing
whatsup-indianstockideas.blogspot.com

ttthakur said...

What's up ji : Came across this report called the carbon bubble: http://www.guardian.co.uk/environment/2013/apr/19/carbon-bubble-financial-crash-crisis

After reading this report, I feel oil,gas and coal companies are long term bubbles, whereas renewables like wind energy, solar cos. shall be winners. Of course, Jayant Agro is futurisitic. Kindly comment on above report.

What'sUp Prahalad said...

TTThakur ji:

There are 2 issues:
1. Carbon a.k.a Climate Change
2. Energy Crisis a.k.a Peak Oil/Energy

1. Carbon/Climate Change is all about temperatures rising due to ever increasing consumption of Fossil fuels.. and its impact on Global climate/Global Warming

2. Peak Energy is about Depletion of Fossil reserves that drive global economy and "Peak Energy" which will result in Dramatic fall in Global economy/Fossil fuel consumption due to depletion of assets..

I think "Global Warming"/Climate Change ..is being marketed with the intention of reducing "fossil fuel consumption"
--------------
Energy density of fossil fuels is very high.. A global economy running on just "windmills and Solar power" will result in very very low economic activity..
--------------
In the good old days before fossil fuel discovery.. a large part of time was spent on Festivals .. and other social gatherings..
--------------
In the future we can expect increasing emphasis on arts and culture ...
economy and drive to achieve will be replaced by:-
Spiritual Growth .. social activities/games tournament
---------------
I think the dark horse is going to be "Nuclear energy" Any country willing to exploit Nuclear energy will benefit from the advantages of "Cheap energy"
---------------
Public transportation is going to also be an important segment which will see tremendous growth..
---------------
Railways is one such area of growth
---------------
Yes the current economic model is ripe for change (and dramatic fall..) Most likely this fall will happen once the future Wealth creating Idea's have been accumulated by the Elite.. top 2%..
---------------
The future is not yet clear and hence Gold has risen to such levels.. fall in gold could indicate identification of new avenues ..
Fall in gold could also have been triggered by the demand for physical gold being raised by a number of countries..
--------------
Empty mind is a devil's workshop.. With high un-employment..we could see increase in demand for "sinfull" activities

Liquor,Smoking, gambling, guns, social tensions and all other vices could see an increase in demand in the post carbon future..
--------------
I hope this was helpful

=happy investing
Whatsup-indianstockideas.blogspot.com

ttthakur said...

What;s Up Prahaladji,
Your thoughts/comments to my query with promptitude, are always helpful to all of your readers.
btw, you have mentioned Transgene Biotek, currently available at Rs.2/-. Are you confident about the prospects of this co.?
Kindly enlighten about this co.
Thanks and Regards,
tttthakur

What'sUp Prahalad said...

TTThakur ji:

frankly speaking did not find anything good.. other than promoters trying to take the company private.. and shareholders refusing to accept..

there are some PE firms who are invested in this..

problem with technology firms is that generally the management is technically sound .. but running a business is whole new ball game..

What I have done is bough 1000 shares investing 2000 bucks.. and will let it sit in my demat account..

I think that is all that I can say.. I Like that they have DHA commercial production but dont see any numbers..

Conclusion: Buy 500 shares and forget else.. you can completely reject this stock..

high risk not worth investing..

=happy investing
whatsup-indianstockideas.blogspot.com

km said...

Dear Prahlad,

Jayant has announced demaise of its chairman Mr.Udeshi. Does the company heavily rely on the strength of this one man. Or is there other members of the family in good control of Jayant?

K.Murali

km said...

Dear Prahlad,

Jayant has announced demaise of its chairman Mr.Udeshi. Does the company heavily rely on the strength of this one man. Or is there other members of the family in good control of Jayant?

K.Murali

What'sUp Prahalad said...

K.Murali ji:

Mr Vithaldas Udeshi ji had reached the ripe age of 80+ .. so I am sure he was not involved in day to day operations of the company..

In the AGM that I attended.. it was Vikram V Udeshi who was answering all the questions ..

generally there is always the aura which protects the family .. and its this strength of the patriarch which protects the family..

So its important to take decisions after a lot of thought for the next few years.. till everyone settles down to their respective
responsibilities..
---------------
I think jayant has built a moat around itself... now the question is to take advantage of this and improve margins ..


=happy investing
whatsup-indianstockideas.blogspot.com

km said...

Dear Prahladji,

Thank you for your knowledge sharing as always. I have two other clarifications in your top investment picks.

1. NHPC seems to get 28% of its income from Jammu and Kashmir which has been frequently under threat. If NHPC is forced to pull out of J & K due to Govt. issues what's the financial impact on its EPS , future growth etc.

2. Tata communication's Land bank has also been questioned during the corruption issues debates. Some say its Govt's favour to tatas which tata's lawyers are refuting vehemently and seems there will need be a court's inteference.Can you pls throw more light on these issues.

Regards
K.Murali

What'sUp Prahalad said...

K.Murali ji:

Every one want's more .. so the quest for more control will always be there in any state..

If the hydel power plants are given to the state govt.. NHPC will have to be compensated in the form of Sale of power plants..
Most of these are depreciated plants and hydro power plants are expensive to build.. So we will get a fair value and that itself is good enough security..
most likely what will happen is state will get a larger share in terms of cost of water etc.. since hydro power is cheap .. passing on cost to consumer will not be a problem..(infact there is regular increase in electricity charges .. by NHPC.. its a process and it works)

Tata comm land bank issue is .. govt had stated before bids were invited itself that land bank is not part of sale.. so all bidders did not quote for the land..

So any question of being biased or negative for tata's is a wrong statement..and there is no legal reason for all this..Its just fear mongering..

all 4 are great buys..In my personal opinion.

=happy investing
whatsup-indianstockideas.blogspot.com

Vijay Chandrakar said...

Prahalad,

You may want to share your thoughts on Jayant/Gael in valuepickr.com. It a great forum for sharing investment ideas and people do good ground work to get information about a company.

Regards,
Vijay

What'sUp Prahalad said...

Vijay Chandrakar ji:

I did post about Jayant in value picker in nov 2012

http://www.valuepickr.com/company/jayant-agro-organics/stock-story

and had some heated discussions about GAEL (Dont have the link..)

1. data in site is 2010.. and not been updated..

2. I have seen my posts being deleted/moderated ..

Like I had posted in basant's corner equity desk about gael and jayant.. and mr basant blocked my account and deleted all the posts..

and it takes a lot of effort to write a meaning full conversation with related information..

I had also posted about Jayant in Safal niveshak which has also been moderated-out!!

So the problem is.. its not free speech.. and when discussion is not on topic of choice people just edit it out.. as they have control over it..

taking it from "india infoline"

It seems.. "its not about Money Honey.. its about control"


=happy investing
whatsup-indianstockideas.blogspot.com

ninad said...

Prlhadji your Transgen Biotek continuously hitting Upper Circuit since last 6-7 trading days with some bulk deals by Gitanjali Investment...What news ?

What'sUp Prahalad said...

Ninad ji:

Transgene Biotek .. I think is doing something good.. though It will take time for it to reflect in the bottomline..

All these clinical trials and Phase-I,Phase-II take atleast few years.. and cost a lot and will not necessarily have positive outcomes..
--------------
The good part is transgene is located in India and cost comparatively will be low..

Also it already has started producing DHA which is nowdays considered a neutraceutical for lot of activities..
So it has some steady revenue stream..
--------------
As I said .. one can just buy a little and keep it .. maybe it will turn into a gold mine or just cheap toilet paper..

=happy investing
whatsup-indianstockideas.blogspot.com