Business Details
Tamilnadu Petro products limited was founded in year 1984. The factory and registered office of the Company is located in Chennai. The key products are
- Caustic Soda
- Used in Paper, Aluminium and other general use
- Chlorine and Derivatives
- Linear Alkyl Benzene (LAB)
- Used in Fabric washing.
- It has approx 40% market share LAB used in detergents used in fabric washing
- Heavy Alkylate and Spindle Oil
- It is created as by product of LAB.
The head office of the Company is located in Chennai.
Stock Performance
Above is long term price performance chart of the Company. The Company has not given any decent returns in past two decades. The prices declined continually from year 2002 to 2014.
The prices increased from year 2014 due to bull market run. The Company offers good dividend so even if Company have not performed on price front at least investors received dividends minimizing the loss.
My Opinion
Tamilnadu Petroproducts is in Chemicals sector. The fact which sets this Company apart from other companies is that it has 40% market share in Linear Alkyl Benzene which is used in preparation of Fabric wash detergents.
Fabric wash detergents is evergreen product and will have growing market in India. So Company even if maintains the market share will have incremental increase in the revenue.
But it has to also open another major revenue source product which will propel next set of development. The caustic soda is one such product but it has big Competitor present in this space with major market share.
It is worth tracking this Company due to good market share in one ever growing product segment. I have already invested in this sector and not planning to increase exposure.