After a sharp decline, this chemical company stock bounced back in just two trading sessions
Shares of the company gained around 10 per cent in just two days.
Shares of TGV Sraac opened today at Rs 158.50, up by roughly 4 per cent from the previous closing. After a sharp fall in the stock price on October 24 to Rs 143.60, the stock bounced back by 10 per cent in just two trading sessions. The 52-week high and low of the company are Rs 182 and Rs 44.10, respectively. A one-year investment of Rs 1 lakh in shares of this business would have approximately doubled at the current stock price.
TGV Sraac Ltd is engaged in the production of Chlor-alkali products, chloromethane, castor derivatives and fatty acids. It is the flagship company of the TGV group which has a presence in industries such as healthcare products, aquaculture, real estate, pharmaceuticals, industrial chemicals and hospitality.
Approximately 87 per cent of its revenues come from its chemicals business. The Oil & Fats Segment generates the remaining revenue. Under its Oil and fats segment, it produces soap noodles, soap oil derivatives, hydroxy stearic acid, and other products under this division. Products from the firm are utilised in several sectors, including textile, pulp and paper, alumina, soaps and detergents, petroleum, fertilisers, medicines, agrochemicals, and water treatment.
The company has a long and established manufacturing track record of almost four decades in the manufacturing of chemicals. Over the years, SRAAC has established long-term relationships with more than 200 clients. The company's manufacturing facility is located in Kurnool, Andhra Pradesh, and features an integrated functioning plant for the production of chlor-alkali products.
To fully maximise its production capability, TGV SRAAC's activities are closely integrated, with the by-product of one process serving as the raw material for another. Due to the business's diverse product offering, it is also somewhat insulated from the effects of market cyclicality for its particular products. The company's solid fundamentals have elevated its stock value.
On a standalone basis, the company's net sales in the most recent quarter, Q1FY23, surged by 137.78 per cent YoY to Rs 596.07 crore. Due to a steady decrease in costs, the PBIDT (ex OI) increased by 361 per cent while the PAT increased by 1391 per cent year over year to Rs 147.80 crore.