Equity research on Colour Chem Limited; The ICFAI-Securities Research Centre

Abstract

Colour Chem is a 59.1% subsidiary of Hoechst AG of Germany. It is engaged in the manufacturing of dye & intermediates, fine chemicals, leather chemicals and in indenting from Hoechst international. The company is having technology tie up with Hoechst, and along with IDI has the distinction of having the Diketone manufacturing technology. The company has two state of the art plants at Thana and Roha of Maharastra. The company has strong fundamentals with a very strong marketing division. The financial fundamentals are very strong and are one of the very best in the industry. Though the company has a history of industrial dispute at Roha works and one of its subsidiary, the industrial relations is generally cordial.