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Resonance Specialities
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Resonance Specialities Limited (Formerly known Armour Polymers Limited) was incorporated in June, 1989 as a Private Limited Company in Maharashtra. The Company thereafter got converted into a Public Limited Company in March, 1990. The Company is manufacturing and marketing of Pyridine and Pyridine derivatives, Picoline, Cynopyridine and some bulk drugs.
The Company's plant is located in the Tarapur Industrial Zone near Mumbai , India. It has plants to manufacture Pyridines, Picolines, Lutidines, Collidines, Cyanopyridines and for various value added products. In Feb.'92, it came out with a public issue to part-finance a project to manufacture 324 tpa of picoline (alpha, beta and gamma) and 346 tpa of pyridine.
Pyridines and picolines are widely used in pharmaceuticals, chemicals, dyestuffs and agro chemicals. Pyridine is the raw material used to manufacture chloramphenicol and chlropheniramine maleate. It is used as a solvent in the manufacture of pharmaceuticals such as norfloxacin and sulphamethoxazole. It is also used as a solvent in the dyestuff industry, as a raw material in agro-chemicals and as a de-naturant in the alcohol industry. Beta picoline is used in the manufacture of niacin and niacinamide, which have wide applications in vitamin prepartions and are also used extensively as animal feed additives.
Gamma picoline is used in the manufacture of isonicotinic hydrazide and as an anti-TB drug. Alpha picoline is used in the manufacture of a wide variety of agro chemicals and 2-vinyl pyridine (used extensively in the rubber and tyre industries. The company also manufactures pyridine derivatives like cyano-pyridines.
The Company tripled its production capacities of Cyanopyridines. The upgradation of the Tarapur plant from 500 TPA to 1500 TPA is being done in close co-operation with Reilly Chemicals S.A. (Reilly) Belgium, a major shareholder in the Company.
During the year 2018-19, the Pilot Plant capacities was enhanced and a new fixed bed-fluidized and reactor was installed with latest automatic technology to monitor and record the reaction.
During 2020-21, projects including Scrubber addition to improve efficiencies; DG Capacity enhancement; Finished Goods Godown Extension; Power savings by Motor optimization and Ammonia Recovery Project were undertaken for enhancing the capacity.
Resonance Specialities share price reflects investor sentiment toward the company and is impacted by various factors such as financial performance, market trends, and economic conditions. Share price is an indicator which shows the current value of the company's shares at which buyers or sellers can transact.
Market capitalization of Resonance Specialities indicates the total value of its outstanding shares. Marketcap is calculated by multiplying share price and outstanding shares of the company. It is a helpful metric for assessing the company's size and market Valuation. It also helps investors understand how Resonance Specialities is valued compared to its competitors.
Resonance Specialities PE ratio helps investors understand what is the market value of each stock compared to Resonance Specialities 's earnings. A PE ratio higher than the average industry PE could indicate an overvaluation of the stock, whereas a lower PE compared to the average industry PE could indicate an undervaluation.
The PEG ratio of Resonance Specialities evaluates its PE ratio in relation to its growth rate. A PEG ratio of 1 indicates a fair value, a PEG ratio of less than 1 indicates undervaluation, and a PEG ratio of more than 1 indicates overvaluation.
Return on Equity (ROE) measures how effectively Resonance Specialities generates profit from shareholders' equity. A higher ROE of more than 20% indicates better financial performance in terms of profitability.
Return on Capital Employed (ROCE) evaluates the profitability of Resonance Specialities in relation to its capital employed. In simple terms, ROCE provides insight to investors as to how well the company is utilizing the capital deployed. A high ROCE of more than 20% shows that the business is making profitable use of its capital.
Total debt of Resonance Specialities shows how much the company owes to either banks or individual creditors. In simple terms, this is the amount the company has to repay. Total debt can be a very useful metric to show the financial health of the company. Total debt more than equity is considered to be a bad sign.
The Debt-to-Equity (DE) ratio of Resonance Specialities compares its total debt to shareholders' equity. A higher Debt to Equity ratio could indicate higher financial risk, while a lower ratio suggests that the company is managing its debt efficiently.
CAGR shows the consistent growth rate of Resonance Specialities over a specific period, whether it is over a month, a year, or 10 years. It is a key metric to evaluate the company’s long-term growth potential. Main metrics for which CAGR is calculated are net sales, net profit, operating profit, and stock returns.
Technical analysis of Resonance Specialities helps investors get an insight into when they can enter or exit the stock. Key components of Resonance Specialities Technical Analysis include:
There are usually multiple support levels, but the main support levels for a stock are S1, S2, S3. Support levels indicate price points where stock might get support from buyers, helping the stock stop falling and rise.
There are usually multiple resistance levels, but the main resistance levels for a stock are R1, R2, R3. Resistance levels represent price points where Resonance Specialities shares often struggle to rise above due to selling pressure.
Dividends refer to the portion of the company’s profits distributed to its shareholders. Dividends are typically paid out in cash and reflect Resonance Specialities ’s financial health and profitability.
Bonus shares are usually given by companies to make the stock more affordable, increase liquidity, boost investor confidence, and more.
Stock split increases the number of its outstanding shares by dividing each existing share into multiple shares. When the company offers a stock split, the face value of the stock reduces in the same proportion as the split ratio.
The financials of Resonance Specialities provide a complete view to investors about its net sales, net profit, operating profits, expenses, and overall financial health. Investors can analyze financial data to assess the company’s stability and also understand how the company has been growing financially.
The profit and loss statement of Resonance Specialities highlights its net sales, net profit, total expenditure, and operating profits in the current financial year. This Profit and Loss statement is crucial for evaluating the profitability and financial stability of Resonance Specialities .
The balance sheet presents a snapshot of Resonance Specialities ’s assets, liabilities, and equity of shareholders, providing insights into the financials of the company.
Cashflow statements track the company's cash inflows and outflows over a period. It is an essential tool for understanding how well the company manages its liquidity and finances.
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