Sicagen India Ltd Stock Research

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Sicagen India Ltd Detail

Sicagen India Ltd is in portfolio of Subramanian P. He is one of the top investors in India. The company belongs to Diversified sector.

As per the Company website it is a leading integrated, value-added solutions provider for infrastructure, industrial packaging and specialty chemicals for water treatment. Below are different business and subsidiaries

  • Building Materials
  • Power and Control Systems
  • Industrial Packaging
  • Boat Building
  • Sicagen Chemicals
  • Wilson Cables
  • Danish Steel

It is part of Singapore head quartered 2 billion dollar AM international group.It is present across 6 countries with 5 synergistic business verticals and 2 subsidiaries. It has corporate office in Chennai.

  • Building materials – pipes, steel, cement, cables
  • Power and Control systems – mechanical governor services, servicing of actuators, field service, Electronic governing systems and conversion of mechanical governing systems
  • Industrial packaging – transportation from shipment to shelves
  • Boat building – integrated shipbuilding and governor services to support the maritime infrastructure sector in India
  • Specialty chemicals – chemicals for industrial water treatment, manufacturing and process improvement applications across diverse industrial sectors
  • Wilson cables – premium cables for industrial and other critical applications
  • Danish steel – high-end precision engineering services for assemblies, equipment and systems manufactured in steel, stainless steel and steel alloys
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I have shared long term price performance chart of the Company below.As per Dow theory of technical analysis price performance over a period of time reflects Company state.

Sicagen India Ltd Stock Performance

The stock got listed during 2008 Global crisis. This was one of the worst time to get listd on stock exchanges. The listing price was 17 INR. After listing it took major hit and prices went below 10 mark.

As of now the stock is trading near 20 mark. So in past one decade investors have not made any money in this counter. Most of the time stock traded below or close to 20 mark. The dividend yield is good at 2%. But without any decent price gain dividend yield does not make any positive impression.

Sicagen India Ltd My Opinion

Sicagen India Ltd is a Conglomerate sector. It has presence in many verticals. All of them are major sectors in themselves. For example it operates in building materials which is a sector in itself. It operates in specialty chemicals which is also a sector in itself.

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The company has foreign parentage. I am not sure why it is operating is so many different verticals despite the size being small. It is not big company like TATA Group to operate in so many entirely different verticals. Even TATA found it hard to manage and now trying hard to categorize them.

I am not big fan of small companies trying to do so many things at a time. This diversifies them too much. Instead of that they should focus on one or two verticals at max and try to gain market share in that. The past performance of Company is also not good. I would not be investing in this Company based on past performance and business verticals it operates in.

In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.

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