We remain wary about the product price realization trend given the potential removal of trade protection measure and the limited pricing power of the chemical commodity business
Potential change in duty protection regime can be a dampener for the IG Petrochem and Thirumalai Chemicals
At present, the stock is trading at a multiple of nine times FY19e earnings, which is at a discount compared to peers in the chemical sector.
At the consolidated level, company reported even better numbers aided by performance of Malaysian subsidiary. Net sales were up 39 percent YoY and EBITDA almost doubled in last one year
Ajcon Global is bullish on Thirumalai Chemicals and has recommended buy rating on the stock with a target of Rs 130 in its September 09, 2014 research report.
Sunidhi Securities is bullish on Thirumalai Chemicals and has recommended buy rating on the stock with a target of Rs 145 in its December 7, 2012 research report.