StrategicAlpha

Tatva Chintan Pharma- China Plus one Theme?

Long
NSE:TATVA   TATVA CHIN PHARM CHEM LTD
Tatva Chintan Pharma- Recent IPO - CMP 2250- Mcap 4989 Cr

There is no Margin of Safety Currently in Valuations if i look it as a Long Term bet.

However- Currently China Factor is Keeping Speciality Chemical Companies Afloat and Bouyant. As long as sentiments are good, Valuations can go Crazy.

Speciality Chemicals can be a good Theme to Trade.

Incorporated in 1996, Tatva Chintan Pharma Chem Limited is a chemical manufacturing company that manufactures structure directing agents (SDAs), phase transfer catalyst (PTCs), pharmaceutical and agrochemical intermediates, and other specialty chemicals. It is among the largest manufacturer of SDAs for zeolites in India.

The company serves customers across industries i.e. automotive, petroleum, agrochemicals, dyes and pigments, paints and coatings, pharmaceutical, personal care, and others. Its products are not only sold in India but also export to 25+ countries all over the world such as the USA, Germany, South Africa, China, and the UK. In FY 2020, total export contributed to 76% of total revenue from operations.

Merck, Bayer AG, Ipox Chemicals, Laurus labs , Navin Fluorine International Limited, Atul Limited, Otsuka Chemicals, SRF Limited, Hawks Chemical Company, Firmenich Aromatics Prod Pvt Ltd, and Divi's laboratories are a few of customers of the company. Currently, it has two manufacturing facilities at Ankleshwar and Dahej in Gujarat.

Competitive strengths

Leading manufacturer of structure directing agents and phase transfer catalyst.
Diversified product portfolio.
Global market presence with customer base across industries.
Strategically located manufacturing facility in Gujarat with close proximity to Hazira Port.
Experienced promoters and managers team.
Strong financial performance track record.

Company Promoters:
Ajaykumar Mansukhlal Patel, Chintan Nitinkumar Shah, and Snehkar Rasiklal Somani are the company promoters.