Tamil­nadu Petro­prod­ucts Ltd

Money Times - - Techno Funda -

(BSE Code: 500777) (CMP: Rs.38) (FV: Rs.10)

In­cor­po­rated in 1984, Tamil Nadu Petro­prod­ucts Ltd (TNPL) man­u­fac­tures, sells and ex­ports petro­chem­i­cal/chem­i­cal prod­ucts. It of­fers lin­ear alkyl ben­zene, an in­ter­me­di­ate chem­i­cal used in the man­u­fac­ture of house­hold and in­dus­trial clean­ing agents; heavy alky­late, a byprod­uct of lin­ear alkyl ben­zene; and caus­tic soda for use in tex­tile, pulp and pa­per, alu­minum and soaps and de­ter­gents in­dus­tries. It also pro­vides chlo­rine, a by-prod­uct of caus­tic soda for use in sec­tors such as vinyl chlo­ride, CPW, pulp and pa­per, wa­ter pu­rifi­ca­tion, chlo­ri­nated sol­vents, etc; hy­drochlo­ric acid; am­mo­nium chlo­ride; com­pressed hy­dro­gen; and sodium hypochlo­rite.

With an eq­uity cap­i­tal of Rs.89.97 crore and re­serves of Rs.271.85 crore, TNPL’s share book value works out to Rs.40.22. Its P/BV ra­tio stands at just 0.94x, which is very at­trac­tive. The pro­mot­ers hold 34.54% of the eq­uity cap­i­tal, which leaves 65.46% stake with the in­vest­ing pub­lic.

Dur­ing Q2FY19, TNPL re­ported 67% higher PAT of Rs.19.33 crore on 41% higher sales of Rs.333.71 crore and an EPS of Rs.2.15. Dur­ing H1FY19, it re­ported 31% higher PAT of Rs.28.75 crore on

14% higher sales of Rs.606.83 crore and an EPS of

Rs.3.2. It paid 5% div­i­dend for FY18. Cur­rently, the stock trades at a P/E of 6.39x and is avail­able at 55% dis­count to its 52-week high of

Rs.84 recorded in Novem­ber 2017. The stock looks quite at­trac­tive based on its per­for­mance pa­ram­e­ters. In­vestors can buy this stock with a stop loss of Rs.30. On the up­per side, it could zoom to Rs.65-70 in the long-term.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.