This Hidden Gem Stock Soars 68 per cent in 5 Years with 30 per cent+ ROE – Now Unveils Massive Expansion!
This High-Growth Stock Just Launched a Game-Changing Expansion
Cuddalore, October 2024 – TANFAC Industries Ltd., a leading producer of hydrofluoric acid and its derivatives, has successfully completed the brownfield expansion of its Hydrofluoric Acid (HF) plant. The expansion doubles the company’s HF production capacity from 14,850 metric tons (MT) to 29,700 MT per year. The project, completed at a cost of Rs 100 crores, was commissioned within the expected timeline of 15 to 18 months from the announcement in February 2023.
Major Milestone in India's Fluorochemicals Sector
This expansion cements TANFAC's position as one of India’s largest HF manufacturers, significantly enhancing the company’s production capabilities. The new plant is equipped with state-of-the-art technology to ensure operational efficiency and safety. The expansion not only supports TANFAC’s business objectives but also strengthens India’s standing in the global fluorochemicals market.
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Focus on Specialty Fluorides
TANFAC plans to use the majority of the additional HF production to manufacture high-end specialty fluoride molecules within its group companies. These specialty fluorides are essential in various industries, including pharmaceuticals, agrochemicals, and electronics. This strategic move is expected to support TANFAC’s growth trajectory by targeting the high-value specialty chemicals market, which continues to expand rapidly.
Manufacturing Capacity and Facility
Spread over 60 acres in the chemical complex of SIPCOT, Cuddalore, TANFAC operates large-scale facilities, including 15,600 MTPA of Anhydrous Hydrofluoric Acid, 15,600 MTPA of Aluminum Fluoride, 82,500 MTPA of Sulphuric Acid, and 8,400 MTPA of specialty fluorides. With the new HF plant now operational, the company’s production capacity is well-positioned to meet rising domestic and international demand.
Broad Product Portfolio
TANFAC Industries Ltd. specializes in inorganic fluorine-based chemicals, offering a wide range of products, including Anhydrous Hydrofluoric Acid, Aluminum Fluoride, Potassium Fluoride, Potassium Bifluoride, and various specialty fluorides. Additionally, the company manufactures other key industrial chemicals such as Sulphuric Acid, Acetic Acid, Peracetic Acid, and Poly Aluminum Chloride.
Company Financial Overview
Company OPM has demonstrated strong financial performance over the past five years, with its Operating Profit Margin (OPM) consistently increasing from 16 per cent to an average of 20 per cent. Although the Net Profit Margin (NPM) has shown volatility, it has improved within the range of 10.30 per cent to 13.76 per cent as of 2024. The company also boasts a robust Return on Equity (ROE) of 32 per cent, indicating effective management of shareholders' equity. Furthermore, the stock has achieved an impressive Compound Annual Growth Rate (CAGR) of 68 per cent over the last five years.