The shares of the chemical manufacturer gained up to 6 percent after the company completed the proposed brownfield capacity expansion worth Rs 100 crore.
With a market capitalization of Rs 1,987.17 crore, the shares of Tanfac Industries Ltd were trading at Rs 1992.15 per share, increasing around 0.29 percent as compared to the previous closing price of Rs 1986.45 apiece.
Reason for rise:-
Today, the shares of the company have seen bullish movement after Tanfac Industries Ltd announced the completion of the proposed brownfield capacity expansion of its Hydrofluoric Acid capacity in its existing unit from 14,850 MT to 29,700 MT worth Rs 100 crore.
Financial condition:-
Looking forward to the company’s financial performance, revenue dipped by 10 percent from Rs 106 crore in Q1FY24 to Rs 95 crore in Q1FY25 but during the same time, net profit shrank by 38 percent from Rs 18 crore to Rs 11 crore.
Prominent investor:-
Ace investor Ashish Kacholia holds 1,18,229 shares, i.e. equivalent to 1.19 percent of the company as of June 2024.
Recent achievement:-
Recently, the company signed a significant five-year supply arrangement with a Japanese specialty chemical manufacturer for refrigerant gas. This agreement is estimated to produce revenues of over ₹675 crore, with deliveries beginning in the second half of fiscal year 2025-26. Tanfac’s foray into the refrigerant gas industry is consistent with its aim to capitalize on expansion in fluorination chemistry.
Shareholding Pattern:-
According to the latest shareholding pattern, the Promoters hold a 51.82 percent stake in the company, domestic Institutional Investors (FII) hold a 0.19 percent stake, while Retail Investors hold a 47.99 percent in Tanfac Industries.
Ratio analysis:-
The company’s critical ratios show that the return on equity decreased from 30.45 percent in FY22-23 to 22.77 percent in FY23-24, while the return on capital employed zoomed from 40.49 percent to 30.06 percent. The net profit margin (NPM) for fiscal year 23-24 is 13.87 percent.
Company snapshot:-
Tanfac Industries Limited offers aluminum fluoride, and sulphuric acid, hydrofluoric acid (HF), and specialty chemicals. The Company has adopted various energy conservation measures at its manufacturing facility in Cuddalore, namely hydrofluoric acid, sulphuric acid and specialty fluorides plants.
Written by:- Abhishek Singh
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