S.P.Tulsian, Investment Advisor Investment Advisor SP Tulsian is of the view that Clariant Chemicals can give 50% return by making investment at the current levels.

Investment Advisor SP Tulsian is of the view that Clariant Chemical can give 50% return by making investment at the current levels.

Clariant Chemical is a multi national company having 63% stake held by a Swiss parent and 17% held by the banks, financial institutions and FIIs. The company has taken over Colour Chem and Vanvyl Dyes in the past. They presently have 5 manufacturing plants, out of which 3 are in Maharashtra and 2 are in Tamil Nadu. The plants in Maharashtra are located in Thane, where they have land to the extent of 300 acres. The company has had its accounting year ended for December and for calendar year 07, the company is likely to post a topline of Rs 1000 crore with a bottomline of about Rs 65 crore, translating into an EPS of close to Rs 25.

The company makes specialised chemicals for leather, paints and other textiles. From 2008, the company is likely to be a sourcing hub for the global operations of the promoter. The share presently ruling at Rs 283, can give return of 50% from level by making investment at these levels.

Disclaimer: The writer may be deemed to be concerned or interested in the recommendation as he and his clients are invested in this scrip.