The Hindu Business Line : Titanor Components in limelight

THE stock of Titanor Components (TCL), a company operating in the field of electrolytic process, has been on the rise on the back of growth in chloro-alkali industry.

The interest in the stock is also due to the expectation that the company may bag orders from the government for electro chlorination systems used for water treatment.

On Thursday, the stock gained 10 per cent to Rs 221.70 on the BSE with volumes of 38,282 shares; on the NSE, it closed at Rs 222.60, up 10 per cent with volume of 29,724 shares. In the last one month, the stock has gained 30 per cent.

TCL manufactures and does re-coating of anodes and cathodes used in electrolytic process. These products find application in chloro-alkali plants, chlorate plants, and cathodic protection systems. It also manufacturers electro chlorinators used for water disinfections.

Several broking firms, in the last few months, have been recommending to their clients to buy the shares due to its niche area of operations.

According to an analyst tracking the company, the outlook for the company is good as the chloro-alkali business, its major user segment, is witnessing an upturn in the last two years. The chloro-alkali industry reached 80 per cent capacity utilisation in 2004 driven by rising demand; caustic soda prices have risen by 40 per cent in the last six months.

Another reason for the interest in the stock is due to substantial investments being made in pipe infrastructure (especially water and oil and gas). On account of these , demand for cathodic anti-corrosion systems is set to increase, which will augur well for TCL, feel analysts.

Another new area the company is in the process of entering into is recovery of metals such as copper, zinc, silver and gold from their host solutions.

Analysts feel that TCL will continue to enjoy high operating profit margins of over 45 per cent. With the Government's thrust on water treatment in the recent Budget and a boom in user industries such as chloro-alkali, the company could show growth of more than 15 per cent in net sales in 2006.

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