Omkar Speciality

Mehta Equities is bullish on Omkar Speciality Chemicals and has recommended buy rating on the stock with a target of 131 in its November 2012 research report.

Omkar Speciality Chemicals Limited (Omkar), formerly Omkar Speciality Chemicals Private Limited, is engaged in the manufacturing and sale of speciality chemicals. Omkar manufactures a range of organic, inorganic and organo inorganic intermediates. The inorganic intermediates include Molybdenum derivatives, Selenium derivatives, Iodine derivatives, Cobalt derivatives, Bismuth and Tungsten derivatives and the organic intermediates include Tartaric acid derivatives and other intermediates. These products find applications in various industries, such as pharmaceutical industry, chemical industry, glass industry, cosmetics, ceramic pigments and cattle and poultry feeds. As of September 30, 2010, the Company’s product portfolio consisted of more than 90 products. The Company is exporting its products to Europe, North America, Asia, South America and Australia. On May 14, 2010, the Company acquired 99.82% interest in Rishichem Research Limited.

According to Mehta Equities, OSCL has a flat performance in Q2 FY13. the topline is decreased by 2 percent to 50.68 Cr on year-on-year basis. EBITDA has degrowth by 5 percent from 9.96 cr to 9.50 Cr.

"We believe Omkar is a good play in small pharma space for investors with a 1-2 year investment perspective. At the current market price of Rs 118, the stock is trading at PE of 9x times to its FY13E earnings. Considering the above rationale we expect the performance to translate healthy growth quarter by quarter. Omkar\'s portfolio have diversified products and diversified customer base which will keep the growth phase inline with the expansion plans. Hence we continue to remain positive and expect decent gains from the current levels. One can buy the stock with a target of Rs 131," says Mehta Equities research report, as quoted by Moneycontrol.

Currently, Omkar Speciality Chemicals Limited is being traded at 120.10. Its 52 week high value is 119.80 and 52 week low has been 49.75. Its average trading volume is 70,228.