Ganesh Benzoplast is a small cap stock with a market cap of around Rs.193 crore and the stock has corrected over 55% in the last year. The stock is currently quoting at Rs.37 and quotes at a P/E of around 6X rolling historical EPS.
Ganesh Benzoplast operates in 3 primary segments viz. food and pharma preservatives, lubricant additives and aftermarket performance chemicals. Most of the downstream oil co companies are the clients of Ganesh Benzo. While the valuations are attractive, the business has been too cyclical and hence the ROE has fluctuated a lot. One can look at this stock as a play on chemical additives in the long run.