Hunters of Dalal Street

Prolife Industries CMP: 159.7 Current market cap: 63 Cr  1. Company engaged in mfg of Dyes, Pigments, pharma and agro chemicals 2. After the demise of previous MD, his son taken over the responsibility of MD – He is just 28 years old but has extensive experience in R & D 3. Future growth a. Mgt planning for 150-200 Crs topline as the company invested in capex in the last 3-5 years from their cash flows b. New products added with better margin joining i. Violet acid which has world wide demand – they are tapping eurpoean markets ii. Very few players in producing this iii. Continous spending on R&D and getting c. Superb ROCE maintaining above 25% d. Fantastic cash management – entire cash cycle is less than a month e. With a net margin of 20-25 crs and higher ROCE, it can demand higher multiples of 40 times and can be a 1000 cr enterprise value (bcoz of net debt free too) 4. Deployed experienced mgt across different countries to grab more export share 5. Managemente is highly spe