This company promoted by Pidilite Group has given 200% returns in a year

This company promoted by Pidilite Group has given 200% returns in a year

Stock Recommendations
by 5paisa Research Team Last Updated: 2022-09-27T12:04:12+05:30

If you had invested Rs 1 lakh in this multibagger chemical company it would have trebled in just one year.  

Part of Parekh Group, Vinyl Chemicals (India) Limited is engaged in the business of trading in Chemicals mainly Vinyl Acetate Monomer (VAM), which is imported/sourced from various global suppliers and distributed in India.   

The shares of this chemical trading company have given mindboggling returns in the last one year. The stock has phenomenally rallied 202% while logging a fresh all-time high of Rs 952.10 on September 19. The stock has witnessed significant momentum in the last couple of months, as such in just six months the stock has rallied 163%.   

Vinyl Chemicals has a market capitalisation of Rs 1234 crore and is currently trading at a TTM PE of 31.23. Pidilite Industries holds a 40.64% stake in the equity capital of the company. The company generated 82% of its revenue by the sale of chemicals (VAM) to its promoter company, Pidilite Industries Ltd.  

The company has given a strong Q1FY23 wherein consolidated net revenue stood at Rs 310.75 which grew by 108% YoY and 158% on a QoQ basis. 

Net Profit for the company stood at Rs 10.92 crore which grew 74% on YoY but shrunk by 25% on a QoQ basis. 

Shares of Vinyl Chemical have significantly outpaced the benchmark S&P BSE Sensex which had shrunk by 4.84% in the last one year, whereas S&P BSE Smallcap is down by 0.61 % in the same period.   

At 11.30 am, the shares of Vinyl Chemicals (India) Ltd were quoting Rs 639.45 with a loss of 5% over its previous close.  

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Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.

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