Tatva Chintan soars 17% on robust Q2 nos; stock up 130% from issue price

Shares of Tatva Chintan Pharma Chem zoomed 17 per cent to Rs 2,488.90 on the BSE in Monday’s intraday trade after the company reported a robust set of numbers for the quarter ended September 2021 (Q2FY22), on back of higher revenue. The stock of the specialty chemicals was trading at its highest level since its listing on July 29, 2021.

For Q2FY22, Tatva Chintan’s consolidated net profit jumped over nine-fold to Rs 32.41 crore as against Rs 3.56 crore in Q2FY21. Revenue from operations during the quarter more than doubled to Rs 123.62 crore from Rs 60.04 crore in the corresponding quarter of previous fiscal. The company’s, earnings before interest, tax, depreciation and amortization (ebitda) margin improved to 31.3 per cent from 13.85 per cent.

Tatva Chintan is a specialty chemicals manufacturing company engaged in the manufacture of a diverse portfolio of structure directing agents (SDAs), phase transfer catalysts (PTCs), electrolyte salts for super capacitor batteries and pharmaceutical and agrochemical intermediates and other specialty chemicals (PASC).

Tatva Chintan had made a stellar stock market debut, with a whopping 95 per cent premium listing over its issue price of Rs 1,083 per share on the BSE. With today’s rally, the stock has zoomed 130 per cent from its issue price.

The company is operating in a very niche segment with great products that provide these benefits are witnessing strong demand in India and globally. The company intends to play a great role in the value chain by expanding its portfolio to cater to customers across diverse sectors and geographies, while continuing to strengthen the existing product portfolio by leveraging its vast experience and technical capabilities.

The company believes that expansion of R&D competencies will provide it with long-term growth opportunities in capturing emerging demand and evolving customer requirements. Towards this, it plans to deploy new-age technologies for product development and processes to improve productivity, quality, and cost effectiveness.

“Continued R&D investments and focus on quality and timely delivery will help increase the wallet share and product portfolio with existing customers. Further, the Company plans to leverage its vast sales and marketing network, comprehensive product portfolio, and industry standing to expand customer base,” Tatva Chintan said in financial year 2020-21 (FY21) annual report.

Along with this, the Company also intends to add capacity in a phased manner to ensure optimum utilization and meet the anticipated increase in the demand for its products, which will enable it to supply to growing markets more efficiently and drive profitability, the company said.

At 11:05 am; the stock was trading 10 per cent higher at Rs 2,346 on the BSE, as compared to 0.07 per cent rise in the S&P BSE Sensex. The trading volumes on the counter nearly-doubled with a combined 363,000 shares changing hands on the NSE and BSE.