Multibagger stock: Rs 1 lakh invested in this small-cap company a year ago would have multiplied more than 4 times

From Rs 47 to Rs 207, this small-cap stock has quadrupled in a year.

Defying the market volatility, Panchsheel Organics has been trending upwards in the last 2 years giving 355% and 732% simple price returns in 1 and 2 years, respectively. This small-cap company is a manufacturer and exporter of Active Pharma Ingredients (APIs), Intermediates & Finished Formulations (both Human and Veterinary). 

The shares of Panchsheel Organics have outperformed the broad market index by a huge margin - with S&P BSE Smallcap remaining flat after a year and S&P BSE Healthcare has lost 13.8%.

•  Rs 1,00,000 invested just 1 year ago would have become Rs 4,54,500 giving a price return of 355% and,

• Rs 1,00,000 invested 2 years ago would have swelled to a mindboggling Rs 832,200 giving a price return of 732%.

Panchsheel Organics, a part of the Pharmaceutical Division of the Turakhia Brothers Group exports bulk actives to over 60 countries mainly in Europe, South East Asia, Japan and Latin America. The company's inherent strength lies in identifying relevant bulk drugs and selling them at affordable prices across the world. The company has given stellar performance in FY22 wherein sales grew by 40% while PAT more than doubled from Rs 4.04 crore to Rs 8.36 crore. ROCE and ROE during FY22 stood at 24.6% and 19%, respectively.

The company’s share price is currently trading at a TTM P/E of 24.9x times, compared to the industry P/E of 31.35x. Shares of Panchsheel Organics have logged 52-week high and low of Rs 235.95 and Rs 42.30, respectively. It enjoys a market capitalisation of Rs 244 crore. 

At 2.50 pm, shares of Panchsheel Organics were quoting Rs 206.95, down 0.53% or Rs 1.10 per share.