SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Check Before You Invest : Thirumalai Chemicals Ltd

BSE: 500412 NSE: TIRUMALCHM ISIN: INE338A01024
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Chemicals

Snapshot

Q.1 Which industry/sub-sector does Thirumalai Chemicals Ltd belong to?
Thirumalai Chemicals Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.
Q.2 Is Thirumalai Chemicals Ltd a good quality company?
Thirumalai Chemicals Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Thirumalai Chemicals Ltd undervalued or overvalued?
Thirumalai Chemicals Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings - 17.77
Price to Book 1.66 2.42
Price to Sales 1.53 1.42
EV to EBITDA 41.24 12.13
Q.4 Is Thirumalai Chemicals Ltd a good buy now?
Thirumalai Chemicals Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Thirumalai Chemicals Ltd?
Thirumalai Chemicals Ltd revenue growth is 8.3% for FY-2025, which is below its 5-year CAGR of 19.98%, indicating slower growth.

Q.2 Gross Profit margin of Thirumalai Chemicals Ltd?
Thirumalai Chemicals Ltd Gross profit margin which is the profit after deduction of direct costs, is 6.4% for FY-2025, which is below its 5-year median of 10.1%, indicating decreasing margins.

Q.3 Operating Profit Margin of Thirumalai Chemicals Ltd?
Thirumalai Chemicals Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.37% for FY-2025, which is below its 5-year median of 9.51% indicating decreasing margins.

Q.4 Net Profit Margin of Thirumalai Chemicals Ltd?
Thirumalai Chemicals Ltd Net Profit Margin is 3.82% for FY-2025, is below its 5-year median of 6.47%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 6.4 10.1
Operating Profit Margin (%) 7.37 9.51
Net Profit Margin (%) 3.82 6.47

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Thirumalai Chemicals Ltd?
Thirumalai Chemicals Ltd Return on Asset is 4.24%, which is below its 5-year historical median of 7.13%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Thirumalai Chemicals Ltd?
Thirumalai Chemicals Ltd Return on capital employed is 10.68% for FY-2025, which is below its 5-year historical median of 16.8%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Thirumalai Chemicals Ltd?
Thirumalai Chemicals Ltd Return on equity is 7.86% for FY-2025, which is below its 5-year historical median of 13.06%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Thirumalai Chemicals Ltd?
Thirumalai Chemicals Ltd Cash conversion cycle is -14 days, above its 5-year historical median of -24 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.11 1.1
ROE (%) 7.86 13.06
ROCE (%) 10.68 16.8
Cash Conversion Cycle -14 days -24 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Thirumalai Chemicals Ltd?
Thirumalai Chemicals Ltd Debt-to-Equity ratio is 0.47, which is above the industry average of 0.13, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Thirumalai Chemicals Ltd?
Thirumalai Chemicals Ltd Debt to cash flow from operations is 4.95, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Thirumalai Chemicals Ltd?

Q.1 Promoter shareholding and pledge status of Thirumalai Chemicals Ltd?
Promoters hold 37.13% of the Thirumalai Chemicals Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Thirumalai Chemicals Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Thirumalai Chemicals Ltd vs industry peers?
Thirumalai Chemicals Ltd revenue CAGR is 19.98%, compared to the industry median CAGR of 7.53%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 8.3 7.5
Gross Profit Growth (%) 66.3 12.1
Operating Profit Growth (%) 72.7 11.7
Net Profit Growth (%) 127.8 9.7
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.11 0.93
ROE (%) 7.86 10.17
ROCE (%) 10.68 12.96
Cash Conversion Cycle (days) -13.56 62

Valuation & price assessment

Q.1 Stock return of Thirumalai Chemicals Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 23.8% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
23.8% 11.8% 6.1% -14.4%
Q.2 Valuation ratios of Thirumalai Chemicals Ltd vs historical?
The current P/E ratio of 0 is lower than its historical median of 17.77, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings - 17.77 28.17
Price to Book 1.66 2.42 2.22
Price to Sales 1.53 1.42 1.93
EV to EBITDA 41.24 12.13 14.20

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through: