Rossari Bio Tech: A company with one of the lowest revenue in its peer group and highest return on net worth.
Rossari Bio-tech ( previously named: Rossari Labtech) was founded in 2003 as a partnership firm by Mr. Edward Walter Menezes, and Mr. Sunil Srinivasan Chari. Both these gentlemen are career-technocrats, cumulatively having over 45 years of experience in the specialty chemicals industry. The firm was renamed to Rossari Biotech Limited and converted into a company in 2009.
Since inception, the company has its main focus in providing sustainable solutions for their customers in making specialty chemical additives. One of the objectives and vision of the company is to provide eco friendly products for the chemical specialty industry.
The company’s portfolio can be divided in 3 major categories:-
- Home and personal care products
- Animal and Pets Products
- Textile and specialty chemical
Personal health and hygiene include Surfactant and detergents and ceramics hold about 46.1% of revenue with textile and speciality industry contributing with the 43.71% of the revenue and the rest 9% coming from Animal health and nutrition.
Rossari Biotech is a global specialty chemical manufacturer with its 13.77% of revenue being generated from international operations. It has the smallest revenue among its peers but with the highest return on net worth of 31.79%.
- Rossari Biotech has an increasing profit after tax.
- The revenue from operations have increased YoY.
- The company has been constantly investing in R&D for consistent development.
- The majority of company’s revenue streams is coming from a very few vendors.
- The company has been constantly investing in R&D for consistent development of new a products.
- The company’s IPO has been subscribed over 3 times on the second day of bidding.
- The company has raised over 143 Cr by institutional investors.
- The company has one of the highest cost of raw materials among its peers.
- The company has limited products.
Overall, Rossari Biotech is a company with strong financial with positive short term driving factors. Although it has a positive feedback, but the initial offer seems to be high and we would recommend our investors to wait to see the performance on the market before buying.
However, this is definitely a small cap and is the one to look out for the future.