Pondy Oxides & Chemicals Ltd (POCL) incorporated in 1995, is one of the India's leading metals, metallic oxides and plastic additives producers. POCL has broad based operations, manufacturing of Lead, Litharge Red lead, Zinc oxide, Lead sub Oxide, and solid and liquid stabilizers of PVC
Recently Gravita India's IPO was closed & issue price was 120-125. It is one of the major competitor to Pondy Oxide and both are operating an identical business. Interestingly, Gravita despite being a smaller company when compared to Pondy, is going public at more than 3 times the valuations commanded by already listed Pondy Oxide.
Since both companies are in same business & POCL is having a capacity more than Gravita India, we recommend a strong BUY call on POCL till listing of Gravita India with a strict stop loss of 10% lower your buying price. The stock will continue to move till the listing of Gravita India.
Here is a brief comparison of both these companies.
| Comparison sheet | ||
|---|---|---|
| Pondy Oxide | Gravita India | |
| Capacity (MT) | 32000 | 24000 |
| Standalone Turnover | 158 | 105 |
| Standalone NP | 5.8 | 5.77 |
| PE Ratio | 7 | 22 |
| Consolidated Turnover | 232 | 159 |
| Consolidated NP | 12.31 | 13.23 |
| PE Ratio | 3.25 | 9.5 |
| M Cap | 40 | 170 |
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