Business Details
Tuticorin Alkali Chemicals and Fertilizers is a Chemicals sector company as the name suggests. Major product group is Chemical. It does product fertilizer as well.
The Company is situated in Tuticorin as the name suggests. It produces all grades of Soda Ash and coproduces Ammonium Chloride Fertilizer.
Major raw materials are Ammonia , Carbon-di-oxide gas and the locally produced Salt.
Soda Ash or Sodium Carbonate is used in Soaps, Detergents, Textiles and Dyes. The fertilizer Ammonium Chloride is used for crops like Sugarcane, paddy and banana. Paddy is major crop of Tamilnadu so there is local consumption of the fertilizer.
It also started manufacturing Sodium Bicarbonate which is used in manufacturing Biscuits and Fire Extinguishers.
Stock Performance
The stock has not performed over long term as per the chart above. On an absolute marking investors have lost money in this counter over the years. This is not long term investment grade stock nor it can be traded like cyclic stock.
It also does not pay any dividend. Thus investors have lost money in this counter.
My Opinion
The products manufactured by Tuticorin Alkali Chemicals and Fertilizers are generic one. These products are also manufactured by leading chemical Company of India. So there is intense competition in this segment.
It has failed to eat up market share of that top Company. This is reflected in share price performance as well.There are better alternatives present in Chemicals space.
I personally would not recommend investing in this counter. The sector is good and I have also invested in Chemicals sector.