Resonance Specialties Ltd Stock Research

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Resonance Specialties Ltd Detail

Resonance Specialty Ltd is in portfolio of Subramanian P. He is one of the top investors in India. The company belongs to Chemicals sector.

As per the Company website it is the first and largest manufacturer and exporter of Chromium Picolinate in India and the only manufacturer in the world with total backward integration i.e. we manufacture our own  Picolines and Cyanopyridine. We were the first to manufacture Cyanopyridine in the country.

Below are different product categories manufactured by the Company

  • Pyridine
  • Picoline
  • Cyanopyridine
  • Lutidines and Collidines
  • Zinc Picolinate
  • Chromium Picolinate
  • Chromium Polynicotinate
  • Niacin
  • Niacinamide

It also manufactures anti tuberculosis products like Isoniazid. It is also India’s first and largest manufacturer and exporter of important drug intermediates such as Picolinic and Dipicolinic acid. The products manufactured by the Company are used mainly in Agro Chemicals, Dyes, Drug and Intermediates and Nutritional Food supplements.

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The Company has head office in Mumbai. It claims to export the product in International market as well and has tie up with Multinational companies. But it has not mentioned name of any Client on their website.

I have shared long term price performance chart of the Company below.As per Dow theory of technical analysis price performance over a period of time reflects Company state.

Resonance Specialties Ltd Stock Performance

The stock has given approximately 3 times return in past 16 year period. It was trading close to 8.5 in year 2002 and now it is trading near 24 mark. Majority of time stock has traded below 20 mark. Two times it has traded above 40 mark. Once in year 2010 and second time in year 2017.

Investors have not lost money in this counter but they have not made real money as well. It does not pay any dividend. So the price gain is only way to make money for Investors. So far stock has been a disappointment for Investors.

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Resonance Specialties Ltd My Opinion

Resonance Specialisty Ltd is in Chemicals sector. I liked the Company while analyzing it. It has so many unique products and monopoly in India over them. It is sole and largest manufacturer for quite a few compounds.

The monopoly and being largest player for these compounds does make it interesting Company to keep track on. It is very tempting indeed. However I was wondering about not so impressive price performance. So I researched about potential market for these compounds.

It helped me pin point the pain area for the Company. Despite being leader in so many compounds it is not performing. The reason is that those compounds are not used widely and does not have major market application.

Chromium Picolinate once was touted as Diabetes level 2 prevention drug and weight loss drug. It is still under investigation and not yet widely accepted. If some of the compounds get widely accepted then it will give this Company major boost and it may turn into potential Multi Bagger due to monopoly position.

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I will be tracking this stock to make sure I am informed about any potential news around the products it manufactures.In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.

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