Business Details
It is flagship Company of the Tainwala Group. It has switched business operations multiple times after its incorporation in year 1985. It seemed that Company was searching for right combination or business to enter for success and future growth.
As of now it has presence in manufacturing of plastics sheets. The products from the Company can be divided into below segments
- PVC Rigid Sheets and Flexible sheets
- Polypropylene sheets
- PVC foils and corrugated
- Polyethylene sheets
- Polystyrene sheets
- Acrylontrile sheets
- Copolymer sheets
It has some good names in its client list namely LT, VA tech wabag, Tata Motors and Hindustan Zinc.
Stock Performance
Above is long term price performance chart of the Company. As you can see in above long term chart investors have not lost money in the counter. Every year it has given positive return (however small it may be). Major price action came in 2014 bull run. It has corrected in recent Corona crisis.
Absence of dividend is negative for the Company.However it has managed to give investors return (in absolute terms it has given six times return to investors).
My Opinion
Tainwala Chemicals and Plastics is in business of Plastic sheet creation. Though it started with different business which have been moved to different entities by the group.
It has wide range of products which are used in different industries. So there is market for the products created by this Company. Also the products is commodity business and there is competition as well.
Investors have not lost money in this counter.It has taken safe approach but I do not like small companies diversifying their operations too much. It will be tough to manage and companies end up going nowhere. Small focused companies are better alternatives instead of small diversified companies.
So I will not suggest to invest in this Company. There are better alternatives available in the market.