Thirumalai Chemicals Ltd Stock Research

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Thirumalai Chemicals Ltd Detail

Thirumalai Chemicals Ltd is in portfolio of Anil Kumar Goel and Dolly Khanna . He is one of the top investors in India. The company belongs to Chemicals sector.

As per the Company website it ranks among the largest producers in the world of Phthalic Anhydride, Malic Acid, Maleic Anhydride and Fumaric Acid. Below are some details about usage of these chemicals. It will help you associate with them better.

  • Phthalic Anhydride
    • Used to manufacture plasticizers, pigments, dyes and resins.
  • Malic Acid
    • Used in toothpaste, skin care products, mouth wash and beverages
  • Fumaric Acid
    • Used in medicines, drinks, food, animal feed, cleansing agents, unsaturated polyester, alkyd resins, and printing inks.
  • Fine Chemicals
    • Diethyl phthalate is used to make plastics more flexible. It is used in tooth brush and automobile industry to name a few.

The Company has offices in India and Malaysia. It exports the products to more than 34 countries. It has major presence in US, Europe and Australia.

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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.

Thirumalai Chemicals Ltd Stock Performance

Above chart explains why one should not invest in frenzy moving stocks even if it good Company. You should either invest at beginning of cycle or early in the cycle. People investing at later period often end of on losing side.

From year 2002 to 2016 the stock gave only two times return.It was another not so great performing stocks. In last couple of years it zoomed past 200 and inched close to 250 mark from 20 odd levels giving 12 times return in very short period. Since then stock has corrected 50% but still return is good. The dividend yield is excellent at current market price.

Thirumalai Chemicals Ltd My Opinion

Thirumalai Chemicals Ltd is a Chemicals Company. Chemicals is very vast sector. There are too many companies each preparing different set of products. Companies who have unique product catering growth sectors having demand for those products are performing better than others.

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If you want to invest in Chemicals sector then you should analyze how the chemicals are used and what is demand of them in different industries. If you have evaluated this correctly then you can easily spot the Company to invest in. There are many good Companies in this sector which have performed well over the years.

This stock claims to be largest producer of some compounds (4 to be precise). I have provided some detail about these Compounds. You can explore them in details before making a decision about it. Also it is better to wait now as Company may enter into long consolidation mode before making next move.

I am invested in Chemicals sector and have decent exposure. I am not considering this Company as of now.

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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