Ashish Kacholia takes a fresh entry in multibagger small-cap chemical stock with, zero debt, surplus cash and highest-ever profits - discover the driving forces behind his entry!
Boasting zero debt and achieving its highest-ever revenue, EBITDA, PAT, and surplus cash, surpassing previous milestones set in the financial year 2022.
In a dynamic week for the Indian benchmark indices, the bulls orchestrated a remarkable ascent, notching a fresh all-time high. The harmony in fund flows from both Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs), who have been consistent net buyers in the equity market for the past weeks, adds to the positive market sentiment. Against the backdrop of a shifting global landscape, marked by a promising ease in bond yields and a retreating dollar index, coupled with robust domestic GDP data, the markets find themselves propelled to new heights.
Amidst this surging optimism, the stalwarts of Dalal Street are making strategic moves, none more noteworthy than the seasoned Small-Cap stock picker, Ashish Ramchandra Kacholia. His investment firm, Himalaya Finance & Investment Company, recently acquired 1,80,000 shares of a chemical company at Rs 2210, putting the spotlight on Tanfac Industries Ltd.
Tanfac, a joint-sector company promoted by Anupam Rasayan India Limited and Tamil Nadu Development Corporation, has been in operation since March 1985. Renowned for its production of hydrofluoric acid and its derivatives, Tanfac stands as one of the largest producers of Anhydrous Hydrofluoric Acid and Aluminium Fluoride in India.
Hydrofluoric Acid (HF), a versatile chemical with applications across various industries such as refrigerants, stainless steel, solar cells, electronics, pharmaceutical intermediates, and agro products, is at the core of Tanfac's offerings. Recognizing the growing demand for these industries, Tanfac has strategically planned an expansion of its HF plant to achieve an annual production capacity of 14,500 MTPA. This forward-looking initiative aims to ensure a stable and sufficient supply, addressing potential shortages that could impede industrial progress.
In the broader context of the Indian chemicals industry, ranked as the 6th largest producer and 14th largest exporter globally, the sector is poised for significant growth. Projections indicate an annual growth rate of 9 per cent, reaching USD 300 billion by FY2025, with an ambitious target to surpass USD 1 trillion by FY2040.
Tanfac stands out as a beacon of financial prudence, boasting zero debt and achieving its highest-ever revenue, EBITDA, PAT, and surplus cash, surpassing previous milestones set in the financial year 2022.
The small-cap gem has proven to be a multibagger, witnessing an astounding jump of more than 150 per cent in the last year alone. In a fitting finale to the week, the stock hit the upper circuit limit of 20 per cent and hit fresh 52-week high on Friday, closing at Rs 2,674.55, reflecting a robust gain of 19.96 per cent on the BSE. As Tanfac Industries Ltd continues its impressive trajectory, it remains a compelling prospect in the ever-evolving landscape of the Indian stock market.
Disclaimer: The article is for informational purposes only and not investment advice.
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