Chemical Stock jumps 15% after Govt imposed anti-dumping duty on imports of Trichloro Isocyanuric Acid 

The shares of the prominent chemical manufacturing company gained up to 15 percent after the company, the Ministry of Finance, imposed an anti-dumping duty on imports of Trichloro Isocyanuric Acid. 

Price movement 

With a market capitalization of Rs 787.78 crore, the shares of Bodal Chemicals Ltd were trading at Rs 62.55 per share, increasing around 10.32 percent as compared to the previous closing price of Rs 56.70 apiece. 

Reason for rise 

The shares of Bodal Chemicals Ltd have seen such a bullish movement after the Ministry of Finance imposed an anti-dumping duty on imports of Trichloro Isocyanuric Acid, falling under tariff items 2933 69 10 or 2933 69 90 of the First Schedule to the Customs Tariff Act, 1975, originating in, or exported from China PR and Japan. 

Moreover, Bodal Chemicals Limited is producing TCCA at its Unit 11, located in Neja, Khambhat. Furthermore, as of now, Bodal Chemicals Ltd is the only producer of TCCA products in india. This will help Bodal Chemicals Ltd to add Rs.50 to Rs.60 crores per annum in total turnover starting from financial year 2025 – 2026. This will also help to improve the bottom line of the company. 

Additionally, the anti-dumping duty imposed by the Ministry of Finance shall be effective for a period of 5 years with effect from 07th March 2025 (unless revoked, amended or superseded earlier). 

Financial condition 

Analyzing the company’s financial performance, revenue zoomed by 31 percent from Rs 338.55 crore in Q3FY24 to Rs 443.47 crore in Q3FY25, during the same time, net profit magnified by 453 percent from Rs 0.98 crore to Rs 5.42 crore. 

It has a P/E ratio of 114, compared to the industry’s P/E ratio of 22.8, indicating that the stock is trading at a higher price and is overvalued. Additionally, the company’s debt-to-equity ratio stands at 0.77. 

Market Outlook and Growth Projections 

Management is optimistic about the chemical industry’s recovery, targeting an annual topline of Rs 2,000 crores. EBITDA is expected at 12 percent-15 percent in upcoming quarters. With no major CAPEX planned for the next 4-6 quarters, the focus remains on consolidating recent expenditures to drive efficiency and profitability.

Margins and Profitability Guidance 

Current EBITDA margins stand at 10.4 percent, with management expecting improvement as production stabilizes and demand rises. The company aims for a blended margin of 13 percent at Rs 1,000 crore revenue, driven by operational efficiencies and growth momentum. 

Company Overview 

Bodal Chemicals Limited is one of India’s leading integrated Dyestuff companies and is the largest domestic manufacturer of Dye Intermediates. It offers a wide range of Dyestuffs, Dye Intermediates, Basic Chemicals, and its variants to diverse customers across India and the world. 

Written by Abhishek Singh

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