This chemical industry company delivered over 232% returns in a year; do you hold it?

An investment of Rs 1 lakh in the shares of this company 1 year ago would have turned to Rs 3.35 lakh today. 

Tanfac Industries Ltd, an S&P BSE SmallCap company, has delivered multibagger returns to its shareholders in the last one year. During this period, the company’s share price jumped from Rs 490.30 on May 10, 2022, to Rs 1,630.75 on May 9, 2023, an increase of 232% in the one-year holding period. 

Recent performance highlights 

In the recent quarter Q4FY23, on a standalone basis, the company’s net profit increased by 217% YoY to Rs 22.38 crore. The company’s net sales increased by 72.18% YoY to Rs 115.53 crore from Rs 67.10 crore. 

The company is currently trading at a PE of 29.2X against the industry PE of 28.6X. In FY23, the company delivered an ROE and ROCE of 35.3% and 48%, respectively. It is a constituent of Group X stocks and commands a market capitalization of Rs 1,639 crore. 

Company Profile 

Tanfac Industries, incorporated in 1972, is a Joint Sector Company promoted by The Aditya Birla Group of Companies i.e., Grasim Industries, Hindalco Industries, Pilani Industries & Investment Corporation (PI&ICL) and Tamilnadu Industrial Development Corporation (TIDCO). It is one of India's largest suppliers of Fluorine chemicals. Its plant and facilities are spread over 60 acres in the chemical complex of SIPCOT at Cuddalore near Pondicherry, about 200 km from Chennai, India.

Growth Drivers 

The company is engaged in the manufacture of chemicals such as aluminium fluoride, anhydrous hydrogen fluoride with a generation capacity of 15,600 tpa in each. In addition to this Tanfac manufactures sulphuric acid to the tune of 14,400 tpa inclusive of oleum, and, speciality fluorides to the tune of 3,400 tpa. The fluorine-based chemicals have vital applications in industries such as aluminium smelting, petroleum refining, refrigerant gases, steel re-rolling, glass, ceramics, sugar, fertilizers, heavy water, etc. 

Share price movements    

Today, the share of Tanfac Industries Ltd opened at Rs 1,645.90 and has touched a high and low of Rs 1,645.90 and Rs 1616.05, respectively. So far 44 shares have been traded on the bourses. 

At the time of writing, the shares of Titagarh Wagon Ltd were trading at Rs 1,616.05, a decrease of 0.9% from the previous day’s closing price of Rs 1,630.75 on BSE. The stock has a 52-week high and low of Rs 1,684.85 and Rs 433.50 respectively on BSE.