We continue to look at Vidhi as the preferred way to play the food colour theme because of its improved operational metrics
Mangalore Chemicals & Fertilizers | The company reported lower profit at Rs 28.97 crore in Q2FY22 against Rs 40.56 crore in Q2FY21, revenue increased to Rs 727.82 crore against Rs 688.74 crore YoY.
PRO Only Highlights
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
Vidhi Specialty Food Ingredients (CMP: Rs 358, Market Cap: Rs 1,788 crore) has posted a strong top-line growth, though this was partly offset by margin contraction. While the EBITDA margin has dropped to the level where it was four years back when the company had a significant trading business, there are reasons to believe that the margin should improve as supply-chain disruptions ebb. Q2: Raw material inflation Sales during the second quarter jumped 160 percent YoY, benefitting both from volume and…