Expect Camlin Fine to touch Rs 150 level over next 9-12 months: Mehraboon Irani

In a chat with ET Now, Mehraboon Irani, Nirmal Bang Securities shares the rationale behind his preference for Camlin Fine Sciences.

ET Now: You told us about one idea and that was Mold-Tek Technologies. Give us some other ideas. I believe you like it speciality chemicals company Camlin Fine Sciences. Am I right?

Mehraboon Irani: We like this company for quite some time. The company has announced a disappointing set of numbers for the September quarter. This has put off quite a few investors, who had invested recently in this company. But we remain solid in our view that this is a stock, which as per our price target, could touch Rs 250 level.

From the prevailing prices, this is like more than double over the next 24 to 30 months. In the short term, the stock may though not have too many triggers. This company is in the antioxidants and speciality chemical spaces.

It is entering the vanillin market. If we look at vanillin as a commodity, the company intends to capture about 25 per cent of the global vanillin market. The company is setting up a project right now and hopefully the environmental clearance should come very soon at Dahej. So I feel that this company is moving up the value chain.

The margins for speciality chemicals segment are very good. The advantage of the overall fall in raw material cost and this vanillin thing, when it enters the segment, would help company orbiting quite differently over the next two to three months. For a patient investor, this is a stock to buy. We have a stake in this company, as an organization and personally I hold this stock. So that is a clear disclosure. We have an immediate target of 150 over the next 9 to 12 months. But if you ask me over the next 2-2.5 years, I stick to my target of Rs 250.