This multibagger specialty chemical stock rises 35% in a month vs 4% decline in Sensex
Premium- The multibagger stock from the specialty chemical space has rallied over 130% in 2021 (year-to-date or YTD)
Specialty chemical stock Neogen Chemicals has outperformed by rallying over 35% in a month when the benchmark Sensex has slipped more than 4% during the period. Neogen Chemicals is is involved in manufacturing specialty organic bromine-based chemical compounds as well as specialty inorganic lithium-based chemicals compounds.
Shares of Neogen Chemicals have given multibagger return of over 130% in 2021 (year-to-date or YTD) so far. Meanwhile, the specialty chemical manufacturer has surged over 545% since listing. From hovering over ₹260 per share level in May 2019, the multibagger stock currently trades around ₹1,700 level.
The company is looking to raise funds as it informed in an exchange filing on Sunday that the board will meet this week on December 8 to consider raising of funds.
“The meeting of the board of directors of the Company is scheduled to be held on Wednesday, 8 December 2021 to consider, evaluate and approve the proposal for raising of funds by way of issue of any instrument including equity shares, fully/ partly convertible/ nonconvertible instruments including debenture warrants in one or more tranche including by way of a public issue, qualified institution placements, preferential issue or a private placement," Neogen Chemicals said.
For the quarter ended September, the company reported a 51.4% year-on-year (YoY) increase in net profit on a consolidated basis at ₹11 crore and a 38% rise in revenue to ₹113 crore.
Specialty chemical stocks have led the theme this year amid improved outlook, demand uptick, and rising realisations. Brokerages have been bullish on the sector with a positive outlook as they expect India’s share in the specialty chemicals to double over the next five years.
The chemical sector has created impressive wealth for the investors in the last five years as most of the stocks have turned multifold. The sharp upmove, as per analysts, can be attributed to the improved outlook and the fact that covid pandemic has accelerated the shift away from China to other countries.
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