Up by 78 per cent in one month, this Aditya Birla Group chemical company trades at 10 year high!

The stocks from the chemical sector are seen outperforming on bourses. The shares from the specialty chemical especially are seen soaring with hefty gains.

Tanfac Industries is one such chemicals company that is seen steadily outperforming the markets. 

The stock is up by ~80 per cent in one month alone while in 2021 itself the stock is up by more than 226 per cent. In five years, the stock is up by 1259 per cent and is turning out to be another multibagger from the chemical sector. The stock is trading above Rs 600 apiece on Thursday even as the stock has made a 10-year high for itself. 

The share price of Tanfac Industries is up by ~5 per cent on Thursday trading session when the frontline indices are trading flat with volatility. 

The chemical industry is in a sweet spot and stands to benefit from the ‘China plus one’ trend in global supply chain. China is one of the largest Fluorine producing and consuming countries in the world. The environmental protection drive started during 2016 had further intensified during 2019. China further deepened regulatory investigations to enhance production safety and significantly reduce environment pollution. This is acting as a huge trigger for the chemical industry and market is discounting this big positive development thus rerating the chemical stocks. 

Due to high demand, the Fluorspar prices are also seen rising, thus helping Tanfac industries trade with positive momentum. Fluorspar is the source of fluorine. 

In India the market growth is driven by downstream sectors like Automobile, Air Conditioning, Refrigeration, Construction Cold Storage and Pharma / Life Science segments. Life Science segment has emerged one of the key drivers over the years. Besides, India is expected to become 4th largest chemical producer in the world by 2030, benefitting from rising export opportunities, stability of prices, faster end user industry growth and low penetration of specialty chemicals. 

Tanfac Industries continues to focus on downstream Specialty Fluorides / VAPs and is strongly positioned in a niche segment of DHF as a prime mover.

Tanfac Industries Ltd is a joint sector company promoted by Aditya Birla Group and Tamil Nadu Industrial Development Corporation (TIDCO). The manufacturing facilities are spread over 60 acres in the chemical complex of SIPCOT Industrial Estate, Cuddalore.