The Thirumalai Express seems to be gathering steam & momentum as it marches ahead! It is heartening to note the improvement in the operating margins in each of its preceding few quarters. In an otherwise somewhat expensive market, Thirumalai is still available at near single digit multiple for 18-19.
The stock may have been about a three bagger in the last 6 months or so, but looks good for higher levels. Adding more at current levels.
Yes, stock is still cheap and missed to add around 1700- 1800 in the correction due to lack of funds. Somehow i feel that Market is not ready to give a premium valuation even though results have been fantastic or is it already priced in?. Any insights?
last week onwards crude is coming back to 60$ will it be good for these chemical companies?
Invested at high price@2400 and have 20 shares…
A look at the shareholding pattern as on March 2018 shows a gradual & steady increase in the holdings of Foreign Portfolio managers, from 3.39% in September 2017 to 6.85% in March 2018.
The March results would shed more light whether the operating margins continue to improve or not. The stock itself is available under 12 times multiple for 18-19.
How will the share split affect the story?
Won’t affect the business story but few Retail investors don’t find courage to buy very high “priced” stocks. Split helps here.
Disc: Invested
Results for March 2018:
While the underlying business story is not effected, the demand supply equation changes. Depending on the new FV the supply of shares will increase xx times (say if the old FV was 10/- and new FV = 1 then the supply will go up 10 times). So any increase in the price (i.e. demand) could see fresh supply of the split stock and price could be range bound for even upto 1 year post the split. Legendary investors like Peter Lynch would not touch a stock for a year or more in case of a split … I have personally observed this to be true (check Yes Bank as a good example) … however, some cases where the floating stock is very low and investors are committed, the increase in demand (due to lower cost per share) would actually lead to price increase … this is less frequent though.
Anyone has analysed the results ? The quarterly comparison to Mar 17 and the annual results compared between '17 & '18 both seem positive. A quarterly comparison of Mar to Dec (previous quarter) shows some decline, but typically a lot of businesses are seasonal and hence prefer to look at the same quarter of the previous year. By that yardstick, the business has done well. I was wondering if anyone had some background information on the business (like raw material price increase or something else) that is effecting the sentiment negatively or is it just the technical behaviour … Please see the price chart … the stock has been consolidating in the range of 1640 to 2440 since Oct 17.
If there are bigger issues then stock may break 1640 levels …
Disc: Invested a small qty to have it on my radar …
Any particular reason, why the CFO has resigned?
Thanks a lot everyone for the really useful discussion
Does anyone have a breakdown of how much of PAN produced by Thiru goes to which industries and who are the biggest customers of Thirumalai Chem?
It would help get a sense whether rising raw material costs can be passed on to customers
As for uses of PAN I found the below link
Also I noticed that 91% revenue is PAN. just curious if anyone has insight into why the diversification happened into Food Ingredients and Fine Chem business?
Thanks
The AR for 17-18 is out and the strategy seems to be to get into more value added items by using their main products Phthalic Anhydride & Maleic Anhydride. In addition, the new plant in Dahej should possibly come on stream in the current year. The mgt. appears confident of sustained growth & improved performance going forward.
They have mentioned about shift towards value added products in last year AR also. Management is going in right direction and it’s no more a pure commodity play.
I agree that the management is heading in the right direction. But I cannot figure what is causing the consistent drop in the stock price though. Does anybody have any information regarding this? I currently am holding around 10% of PF in Thirumalai(at 18% Loss) and not sure if I need to cut it down, hold or average down.
All midcaps/small caps has fallen significantly & that’s the only reason otherwise there is no negative. One need to hold stock for long term to really make good wealth. Short term volatility etc is not in our hand. Just concentrate on biz and if biz is doing good then sooner or later price will catch up…
Contingent Liability for FY18 has shot up, more than 3 times to 162.35cr. Is it something serious, Request seniors for guidance.
That’s not how it works. Contingent liabilities are if the contingency is probable and liability can be reasonably measured
One doubt ppl.I have been following this script recently.
Has the share split been completed? Is the script trading at ex split price
