Dynamic Industries Ltd. Detail
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Dynamic Industries Ltd. is in portfolio of Subramanian P. He is one of the top investors in India. It is in Chemical sector. It is more of a Dyes company to be precise. As per the Company website it produces two types of dyes in different color variants.
The two dye variants are Acid Dyes and Dry dyes. Different colors of Acid Dyes are Red, Violet, Brown, Black, Blue, Yellow, Orange and Green. Different colors of Dry Dyes are Red, Violet, Blue and Black.
The company is situated at Gujarat Industrial Development Corporation (GIDC), Vatva, Ahmedabad. As per the Company website present clientele includes countries in South America, North America, Europe, South and East Asia. It is Government recognized two star export house.
Now lets look at performance of this company over the years.As per Dow theory of technical analysis price performance over a period of time reflects Company state.
Dynamic Industries Ltd. Stock Performance
The long term price performance of the Company looks like a valley between two mountain peaks. The stock zoomed from 5 odd levels in year 2002 to 100 level in year 2008. That is close to 20 times return in short spam of time.
The 2008 global crisis decimated the prices and stock went down to 10 odd levels. It stayed to that price point for 6 years time frame.It is during recent bull run of 2014 to 2017 prices rose back to 100 and above. If you consider only start and end point then it has given 20 times return in 16 years which is acceptable.
It also pays healthy dividend of more than 1% at current market price. The dividend yield ensures passive income for investors and is always good thing to have in a company.
Dynamic Industries Ltd. My Opinion
Dynamic Industries limited is in Dyes and Pigments sector. There is hue demand of artificial colors in most of the industries. People want colorful things and with time more artificial colors are being created for consumption and usage.
This growth has given rise to many small companies creating dyes and pigments of varied colors in India. Some of these companies have given excellent return on stock exchanges. The reason is simple. It was new space and companies performed well in growing market.
It has given good returns in past and sector is good. But there are few companies listed in this sector. So for better decision you should consider those companies along with this one and then make a decision.
I will not be tracking this Company in my stock watch list.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.