Pondy Oxides & Chemicals Ltd. Detail
Pondy Oxides and Chemicals Limited 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 leading Secondary Lead Smelter in India. It produce the highest quality lead and lead alloys and PVC additives
- Lead
- Lead Alloys
- Master Alloys
- Tin Alloys
- Babbit Alloys
- Plastic Additives
The company exports about Fifty percent (50%) of production to international customers mainly but not limited to the Asian region like South Korea, Japan, Indonesia and Middle East.
It uses lead based waste as Raw materials and network supplies to get the raw materials from India and abroad.
Now lets look at performance of this company over the years.As per Dow theory of technical analysis price performance over a period of time reflects Company state.
Pondy Oxides & Chemicals Ltd. Stock Performance
The long term chart of Company can be divided into two parts. One from year 2004 to 2014 and second from 2014 till date. The stock was nearly flat for first 10 years from listing testing patience of Investors as it gave little to no return in the time frame.
The next couple of years were superb and stock gave close to 25 times return in just 2 years. But since that crazy run it is hovering around 300 mark still given 10 times return over 2004 price. I would like to emphasize Compounding stocks over these types stocks.
Over longer run Compounding stocks give better return because they consistently provide good return over a number of years. These stocks remain flat for most times and then give crazy run making everyone interested. The crazy run will then fizzle out quickly as well.
It is currently under ASM Long term Stage 1 surveillance. Personally I do not like stocks under surveillance.
Pondy Oxides & Chemicals Ltd. My Opinion
Pondy Oxides and Chemicals Limited is in Chemicals sector.It is recycling company. It takes waste Lead items as input and creates Lead and Lead Alloys. Recycling is new buzz word and will gain momentum with time.
Companies and Government are giving more importance to Recycling and preserving natural resources. Lead is widely used in a number of Industries. The recycling helps in lowering the production cost and is viable environment friendly option. It is worth investigating if Lead is being replaced with other materials in different Industries 9Lead is poisonous). That will have adverse impact on Company growth.
With growth in Environment protection initiatives and recycling the Company will get benefited. The natural resources are limited so recycling of these are much needed nowadays.
I do not have any Company from this niche in my portfolio or stock watch list as of now. But this is one space I am looking forward to. I will like to explore more companies from this space before making a decision.
In case you are interested in Textiles sector then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.