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
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
Watch Varinder Bansal of CNBC-TV18 decoding the third quarter results of Thirumalai Chemicals in 'Earnings Pataka', a special edition on quarterly earnings.
Thirumalai Chemicals reported an impressive performance in Q1FY13. Its net sales in first quarter rose 109.7% to stand at Rs. 298.8 crore against Rs 142.54 crore on year-on-year basis. Margins too improved from 9.5% to 14% in Q1.