TGVSRAACLI

MITED TP80
Rat
ional
e
 Q1PBTr isesby100%.
 Ri
singCaust i
cSodaprices.Caust
icSodapriceshavetouchedal
l-
ti
mehigh.
 Af
tertouchingRs89.95,stockfel
lasi
nvestorsdidn’
tunderst
andQ4nosproperl
y.
InQ4, tot
alCompr ehensiv
elosswas9Cr .Howev ert
hisisAFTERone-
ti
mewr it
e-of
fs16.
70Cr
.TGVpr
ovi
ded
38Crf orDepr eci
ati
onVs12CrTHI SPROVI SIONWASHI GHERBY26CR.Thusi fweadd26Cr (
Oneti
meext ra
provisi
on)toQ4f i
gure,
PBTi ncreasesby26Crf orFY18(FullYearDepr
eciati
onhigherby40Cr
).
 Q1FY19PBT@31. 52CrVs15. 16CrYoYi shigherby100%.PATi shigherby60%duet osubstant
ialhi
gher
TaxPr ovi
sion.
 TGVl i
kel
yt osust ai
nhighermar gi
nsasCaust i
cSodacont ri
butesmor ethan50% oftopli
neandhi gher
mar ginchemi cal
sandChloromet hanewilladdtoitsprofi
tabil
i
ty
 Stocki st
radingat4.45XFY19EEPS, leav
ingscopef orsubstanti
alappr
eciati
on

Date Jul
y14,2018 TGVSRAACLi mited( SreeRayal
aseemaAl kal
iesandAl liedChemicalsLimit
ed)ist he
BSECode 507753 fl
agshi
pcompanyoft heTGVGr oup.Itisthel eadingproducerofChlor-
Alkal
iproducts
and al
so manuf actures CastorDerivat
ives and Fat t
y Aci ds.Besi
des operati
ng a
CMP Rs.
37 commercialPowerPr ojectof28MW.TGVSRAAChast heuni quedi
sti
ncti
onofbeingt he
MarketCap Rs.
322crore pi
oneeroftheBipolarMembr aneCell
Technol ogyfrom Uttdenonaspa,I
tal
y,i
nIndi
a.
52WeekH Rs.
89.95
Thecompanyusesonlystat
e-of
-t
he-ar
tequipmentanduptot hemi
nut
etechnol
ogi
es
FaceValue Rs.
10 i
ncl
udi
ngtheCMBtechnol
ogyfrom I
tal
yfori
tsfat
tyaci
dsdi
vi
sion.

Pr
omoter
s 57.
05% Thecapti
vepowerpl
antused,assur
esuni
nter
rupt
edandcost
-ef
fect
ivepowersuppl
yto
themanufact
uri
ngpl
ant
.
Ot
her
s 42.
95%
Aconsi stentov erseasdemandf ori t
spr oductshasmadet hecompanyar ecognized
exporthouse t oday .Itexpor ts majorl
yt o-Canada,China,Dubai ,Fr
ance,Geor gia,
Germany ,Greece,I ran,I
taly
,Japan,Jor dan,Kenya,Korea,Kuwait
,Malaysi
a,Netherl
ands,
Poland,Russi a,Singapore,Spain,SriLanka,SaudiArabi
a,Thai
land,USA,UKandahostof
othercount r
iespr eferSreeRayalaseemaAl kali
esandAlli
edChemi cal
sLimit
ed.overother
player
sint hef i
eld.

Capaci
ty
 156,
950MTPerannum ofAl
kal
i
esandAl
l
iedChemi
cal
s
 28MW ofPower
 23,
000MTPHy droxi
de
 41000MTChlor
omethane
 Fatt
yOi
ls

Pr
oduct&i
tsAppl
i
cat
ion
Product Sub-
product Appl
i
cat
ion
Castor Hy dr ogenat edCast orOi l  Caust i
cSodai susedbyal umi nium,paper&pul p,phar macy ,soap,texti
leand
Deri
vati
ves (Flakes&Powder ) rayoni ndustries.
12- Hy dr oxySt earicAci d  Waxf ormul ations,cosmet ics& t oiletr
iespr ocessingai rforr ubber& plastics,
(Flakes&Powder )(REACH met aldr awi ng lubri
cants,packi ng-sealant -castings & coat i
ngs,sour ce of12-
Regi st ered) hydroxyst ear i
cacid.
Ri cinol eicAci d( Liquid)  Maj orcomponenti nLithi
um andCal cium basedmul tipurposeheav ydutygreases;
Ref inedCast orOi l Cosmet i
cs,Waxbl ends,pol ishes,i nksandhotmel tadhesi ves;Coatingsinbot h
Met hy l12Hy droxySt ear ate solventandwat erbasedsy stem andpl asticizer;Act ivat
orandi nter
nallubr
icants
Sodi um Sul phat e fornatur alandsy ntheticrubber s; Sour cef ori ndustri
al Oleo-chemi cal
s
Cast or( Ricinol ei
c)Met hy l  Soaps,ami necompounds,est ersi ncut tingoi l
s,indust r
iallubricant
semul sif
iers,
Est er met alorkingcompounds.
Chlor-
Alkal
i Caust icsoda, caust icpot ash,  Transpar entsoapsandhi ghsol i
dsl iquidsoaps.
l
iquidchl or i
ne, hy drochlor i
c  Dispersionofpi gment sanddy es.
acid,hy drogengas, sodi um  Resins, t
her moset ti
ngacr yli
csandnon- dryingpl asticizingesters.
hypochl orite,bar ium sul phate,  Fibersandt extil
es
potassi um cor bonat e,sodi um I nadhesi vesandcosmet icsandgr eases
hypo  Sour ceofhy droxylsteari
caci df orgl ycerinef r eemul ti
purposel it
hium grease
 Sili
conegr eases, phar ma, pesticide
Fat
t yAcids StearicAci d, SoapNoodl es,
Glycer ine
Chloromethanes Met hy lChl oride, Met helene
Chloride, Chlor oform, Car bon
TetraChl or i
de
SoapsDi vi
si
on Roy al Saf fr
on Sandal , Cool
Lime, Roy al He- Man, Baby
Doct or, Roy al Rose
Power Conv ent i
onal andnon- Usedf
orcapt
iveandcommer
cial
conv ent ional
Caust
icsodamar
ketr
evenuebyappl
i
cat
ion,
2014-
2024(
USDMi
l
li
on)

Fi
nanci
als
Par
ticulars(
Rs.i
ncr
ores) FY2018 FY2017
Revenue 1079 906.
92
NetPr ofi
t 50.
29 19.
44
EPS( Rs.) 5.
55 2.
23

Q1FY19 Q4FY18 Q1FY18

Sal
es 311 304 254
Depr
eci
ati
on 14.
40 38 12.
57
PBT 31.
52 4.
46 15.
16
PAT 17.
04 9.
79 10.
88
EPS 1.
85 1.
08 1.
24

FUTUREOUTLOOK:

Part
icul
arsCr FY19E FY20E
Revenue 1250 1375
PAT 72 87
Equit
y 87.
23
EPSRs. 8.
30 10

Stockisav ai
l
able@ 4.
45XFY19Eepsand3.70xFY20Eeps.EvenifTGVgetsmodestPERatioof10,
shar
epri
ceshoul
dbeRs
80in9-12mont hs.
Wehadr ecommendedPACL@ 23i nFeb18whi chappreci
atednear
ly160%infew weeks.
TGVshoul
dalsopr
ovi
dedecent
appreci
ation.