1 d chart Breakout posible if 1800 cross.Target :- 2300
Entry above 2300
Stoploss:- 1700
Company announced divident.
TRANSPEK trade ideas
1 d chart Breakout posible if 1800 cross.Target :- 2300
Entry above 2300
Stoploss:- 1700
Company announced divident.
Transpek - Breakout CandidateA stock which has teased many times but now is on the verge of breakout upwards and could make a super move going ahead.
Long above 2250 with SL below 2100.
This co could be pyramided above 2300 too and why then the SL could be shifted to 2175.
Transpek done breakout with volumes Buy transpek with sl 1430 closing basis cmp 1840 add till 1600 if breakout retesting stock do tgt 2050-2400-3000 also possible
ABOUT
Incorporated in 1965, Transpek Industry Limited is into the manufacturing and export of a range of chemicals servicing the requirements of customers from a diverse range of industries including Textiles, Pharmaceuticals, Agrochemicals, Advanced Polymers, etc.
KEY POINTS
Product Portfolio
The Co. manufactures chlorinated products for the supply of intermediates and specialty chemicals suitable for multiple applications consisting of Specialty Chemicals, Surfactants, Agrochemicals, Dyes, Polymers, and Pharma.
Market Position
The Co. is one of the largest players in Acid Chlorides that are used in making such polymers and plastics and is focused on maintaining and growing its business in this segment.
New Products
The Co. has introduced four new products under the chlorination chemistry. It also has few new products under pipeline in chlorine and non-chlorine chemistry, which will help the Co. to seize the upcoming opportunity in multi-synthesis products.
Revenue Distribution based on Application- FY22
Polymer - 60%
Pharma - ~13%
Specialty - 13%
Others - ~14%
Manufacturing Facility
The Co. has its plant located in Ekalbara in Gujarat. It has dedicated multipurpose and multiproduct plants spread over 100 acres with a total production capacity of 66,000 MTPA. It also has a facility to take up contract manufacturing and a job work facility for its customers to provide them with economically viable solutions.
Capex
The Co has primary approval for adding 450 metric tons p.m of alkyl and acid chloride on premise at Ekalbara (Gujarat), but it can only add up to 250 metric tons due to the current effluent or emission level norms. It has undertaken a Capex of Rs.35 Cr to replace an old plant for one existing product where demand is expected to be higher. The new plant will add capacity to the tune of 70% of the current plant capacity and will also allow the production of other products.
Geographical Presence
The Co. is amongst the leading global exporters from India since 1986 having long term relations with leading global chemical giants. It has a presence across 14 countries.
Geography Wise Revenue Split FY22
North America: ~61%
India: ~24%
Europe: ~11%
Rest of the World: ~4%
Project on Hold
Due to uncertainties in the aftermath of COVID-19, the new project undertaken through a wholly owned subsidiary of the Company Transpek Creative Chemistry Pvt Ltd, with investments of Rs. 120 Cr., has been put on hold and later decided not to pursue the project further.
R&D
The Co. spent 0.77% of total revenue in R&D in FY22 vs 1.21 % in FY21.
Focus
The Co. is focusing on broadening the market, value-added products and working closely with the current and potential customers. It has been working on expanding its customer base and geographical spread which will add to the overall business volumes in the coming period. Further, it is adding more Acid Chlorides and focusing on commercializing other products that are under development which will help to reduce concentration on Acid Chlorides.
TRANSPEK INDUSTRY : BULLISH MODEBuy@CMP
TGT - 2600 & ABOVE
SL - 2250
Disclaimer :
The analysis is only for illustration purposes only. Please consult your financial advisor, agent, broker before acting on any information. We may or may not have positions in the stock and our actions may be contrary to the one mentioned here. This analysis may or may not be updated. We would not be responsible for the profit/loss resulting from this analysis
Transpek Industries, On verge of Break OutA leading chemical manufacturer, with decent fundamentals, shows consolidation on daily charts. Look at levels of 1341 and 1424 as marked on charts. From 17 Feb, its almost 2 months stock is in this narrow range.
The fall from highs came at lower volumes and after that this sideways movement. Now the stock seems to pick up and waiting to break the above mentioned range. RSI too showing increasing trend even though stock is in sideways trend i.e. a bullish signal.
1475 - 1540 (200 day EMA) - 1700 are eventual targets.
Disclosure - I hold this stock.
Keep an close eyeLast 2 quarters were not good, now consolodating in a narrow range expecting good December quarter
Transpek longLong above 1800 for higher targets.
Considering results yet to come this week expecting the stock to break all time high soon
Transpek - TimeTested-Time to test again!!If this closes above 1780 today, in my view, it's about time to see a new high in Transpek. Fundamentally a strong company and a clear performer from past 5 years, it had withstood previous tough times created by economies and nature. High Debt a little concern, but is well covered with the Operating Cash Flow. A great portfolio of products and in some, only supplier from India to US, it is well placed to generate consistent growing revenues with good margin and profits.
In my view, Technically the stock is in good momentum and from the charts, if it manages to cross and stand above the blue line, who knows?! A new base and a new high!!
Note: Views expressed are for educational purpose only.
Transpek - investment idea positionalFundamentally very strong company. Recently the promoter has bought a very good quantity from the market at all time high levels.
Crucial fibonacci support. All possibility of a retracement from these levels.
RSI already pointing towards a possible oversold condition.
Buy from a long term perspective for stupendous gains. Half buying shall be done at CMP and remaining at 1110 levels(If comes).
Transpek Support TradeTranspek has bounced from its current support and we can see two green candles indicating bullishness. Buy it with a stop loss at the support.
In case it breaks out the triangle decisively, you can shift your target to 61.85% level rather than 38.2%.
