Chemical Stock held by Ashish Kacholia engaged in the business of manufacturing inorganic fluorine-based chemicals like Hydrofluoric acid, sulphuric acid, its derivatives, and many more jumped 12 percent in the day’s trade upon signing an agreement worth Rs. 675 Crores with a leading Japanese firm.
With a market capitalization of Rs. 2,353 Crores, the shares of Tanfac Industries Limited were trading at Rs. 2,357.45 per equity share, up 11 percent from its previous day’s close price of Rs. 2,121.45.
Tanfac Industries Limited has signed a Framework Agreement with a revenue of ~Rs. 675 Crores, with one of the leading Japanese Specialty Chemical companies to supply refrigerant gas for five years. The supply for this product will start from H2 FY2025-26.
Speaking about the Framework Agreement, K. Sendhil Naathan, Managing Director of Tanfac Industries Limited, said “We are pleased to announce the signing of a Framework agreement with one of the prominent Japanese players in Speciality chemicals. With this agreement, TANFAC strategically enters into the refrigerant gas segment. We continue to capture the growth and value in fluorination chemistry and enhance our product offerings.
We will undergo a plant expansion at our Cuddalore facility to manufacture this product. This expansion, coupled with the signing of the agreement, we continue to get visibility over the significant growth in coming years.”
Tanfac Industries Limited is engaged in the business of manufacturing inorganic fluorine-based chemicals like Hydrofluoric acid, sulphuric acid, potassium Bifluoride, and many more. It is amongst the leading producers of Hydrofluoric Acid and its derivatives with a presence across 12 countries.
Ace Investor Ashish Kacholia holds a 1.19 percent stake in the company consisting of 1.18 Lakh Equity Shares. He took a fresh holding position in the company in December 2023.
Its Revenue from Operations declined by 11 percent from Rs. 115.53 Crores in Q4FY23 to Rs. 102.81 Crores in Q4FY24, accompanied by profits of Rs. 22.38 Crores to Rs. 12.67 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 25.3 percent and a return on capital employed (ROCE) of 34.1 percent. It has reported a debt-to-equity ratio of 0, making it a debt-free company.
Written by: Bharath K.S
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