1. Thirumalai Chemicals – Multibagger stock for 2016?
According to Dynamic Levels Researchers, Thirumalai Chemicals
belongs to the multibagger group for the year 2016. The stock has
strong fundamentals and the analysts are optimistic that it would
give high returns. After Budget, it has consistently been a top
performer and has shown a positive price movement.
Quarterly results:
The total income from operations slumped by 26 per cent. In the current June quarter it
stood at Rs. 167.94 cr as compared to Rs.227.04 cr in the same period last year.

2. The Net Profit fell by 13.8 per cent in the current June quarter and stood at Rs. 15.48 cr as
compared to Rs.17.96 cr in the same period last year. However, since Dec, 2015 quarter
its net profit has shown an upward movement. Therefore, the company is showing positive
growth.
Products:
 Phthalic Anhydride
 Maleic Anhydride
 Malic Acid
 Fumaric Acid
 L(+) Tartaric Acid
 Speciality Chemicals
 Diethyl Phthalate (DEP)

3. The impact of some of the products of Thirumalai chemicals on various sectors:
 Phthalic anhydride: The primary use of phthalic anhydride is that it acts as a
chemical intermediate in the production of plastics. Plastic industry is contributing
majorly to the economy growth of many sectors like Auto, Infrastructure, Textiles,
Pharma and the list is long.
 Maleic anhydride: Around 50 per cent of world maleic anhydride output is utilized
in the manufacture of UPR - unsaturated polyester resins. Chopped glass fibers
when added to UPR it produces fibreglass reinforced plastics which are utilized in
pleasure boats, automobiles, tanks, bathroom fixtures and pipes. Thus, it caters to
many sectors, Auto being one of them.
 Fumaric Acid: It is used as a food additive, as an acidity regulator. Fumaric Acid is
generally used in beverages and baking powders, thus catering to the Beverage
sector. It also contributes to the Pharma sector as it has medical benefits as well. It
activates the primary cellular defense against the cytotoxic effects of oxidative
stress.
 Speciality chemicals: These provide a variety of effects on which many sectors
like chemical, textiile, pharma,etc. rely. Some of the categories of speciality
chemicals are agrichemicals, adhesives, construction chemicals, textile auxiliaries
and the list in endless. Other industrial sectors such as automobile, aerospace,
cosmetics, food, agriculture, textile manufacturing, industries are also highly
dependent on such products.
Conclusion:
Thirumalai Chemicals is serving to big developing sectors like Chemical, Pharma, Textile,
Auto,etc. This makes the stock a multibagger stock. Moreover, it is trading at a P.E.
multiple of 17.72 as compared to the chemical sector P.E. which approximately stands at
25. This makes the stock a cheaper bet than other companies in the sector. Also, the scrip
has consistently remained a top performer after Budget and has shown a positive price
movement in the past one month. The Dynamic Levels Researchers recommend a buy in
Thirumalai Chemicals with a target of 650.

4. Disclaimer
The investment advice or guidance provided by way of recommendations, reports or other ways are solely the personal views of the
research team. Users are advised to use the data for the purpose of information and rely on their own judgment while making
investment decision.
Dynamic Equities Pvt. Ltd - SEBI Investment Advisory Reg. No.: INA300002022
Disclosure
Dynamic Equities Pvt. Ltd. is a member of NSE, BSE, MCX SX and a DP with NSDL & CDSL. It is also engaged in Investment Advisory
Services and Portfolio Management Services. Dynamic Commodities Pvt. Ltd., associate company, is a member of MCX & NCDEX. We
declare that our activities were neither suspended nor we have defaulted with any stock exchange authority with whom we are
registered. SEBI, Exchanges and Depositories have conducted the routine inspection and based on their observations have issued
advise letters or levied minor penalty on for certain operational deviations.
Answers to the Best of our knowledge and belief of Dynamic/ its Associates/ Research Analyst: DYNAMIC/its Associates/ Research
Analyst/ his Relative:
 Do not have any financial interest / any actual/beneficial ownership in the subject company.
 Do not have any other material conflict of interest at the time of publication of the research report
 Have not received any compensation from the subject company in the past twelve months
 Have not managed or co-managed public offering of securities for the subject company.
 Have not received any compensation for brokerage services or any products / services or any compensation or other
benefits from the subject company, nor engaged in market making activity for the subject company
 Have not served as an officer, director or employee of the subject company
Article Written by
Salman Hashmi