Multibagger chemical stock dips 40% in 6 months. Should you buy now?
Premium- Multibagger stock nosedived after emergence of some corporate governance issue, which has been resolved now
Multibagger stock: Hikal shares are one of those chemical scrips that belongs to the list of multibagger stocks in 2021. However, the stock has been under selloff pressure for last six months. In last six months, Hikal share price has plunged from ₹617 to ₹364 apiece levels — logging near 40 per cent loss in this period. However, the stock is still among the multibagger stocks as it is still 125 per cent up from its levels one year ago. According to stock market experts, Hikal share price were under selloff heat after eruption of some corporate governance issue, which has been settled now. It has investment of strong Kalyani Group and hence it may give sharp upside moves after the end of consolidation phase in the multibagger scrip.
Speaking on the reason for slump in Hikal share price; Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Hikal Limited is one of the quality companies in pharma and chemical segment. It had to face some corporate governance in recent few months that led to huge slump in stock price of the company. However, it is a quality stock going through consolidation phase. It has investments from Kalyani group and company's fundamentals are quite strong. Those looking for quality pick in today's stock market crash with long term view, they can look at this stock as one of their value picks."
Advising buy on dips strategy to positional investors; Sumeet Bagadia, Executive Director at Choice Broking said, "The stock is in range of ₹320 to ₹390. It has strong support at ₹320 whereas it has strong hurdle at ₹390. On breakage of ₹390 hurdle, it may soon go up to ₹450 levels. However, the stock is in some consolidation phase and hence one should wait for some more dip and buy near around ₹340 to ₹350 levels maintaining stop loss at ₹320 apiece levels."
Hikal Limited reported ₹515.10 crore total income in Q3FY22, which is near 10 per cent higher from its Q2FY22 total income of ₹469.93 crore. In this period, its net profit grew 2.59 per cent against its Q2 net profit while the chemical company reported 2.80 per cent rise in EPS (earning per share). It has reported ₹3.67 EPS in Q3 which stood at ₹3.57 in Q2FY22.
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Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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