The Indian stock market has produced a good number of multibagger stocks in the post-covid rebound. Indo Amines is one of them. The chemical stock has surged 17.13% today to reach an intraday high of ₹ 144.6 on the Bombay Stock Exchange (BSE).
The company’s shares have given stellar returns of 956.32% after the stock market crash due to the pandemic. Therefore, if an investor would have invested ₹ 1 lakh in the shares of the company on 27th March 2020, the value of their holdings would have been ₹10.56 lakhs today!
Indo Amines (formerly Techno Chemical Industries) is a manufacturer, developer and supplier of fine and speciality chemicals, performance chemicals, perfumery chemicals and active pharmaceutical ingredients. The chemicals that it manufactures have applications in various industries like fertilizers, agrochemicals and pharmaceuticals.
The company has a market capitalization of 438 crores and is a micro-cap company. It has given a return on equity of 13.02%. However, its shares are trading at a price-to-equity (PE) ratio of 36.03 which is almost thrice the industry PE of 13.13, indicating that the stock might be overvalued. Therefore, investors are currently expecting that its price might increase in the future.
Written by Simran Bafna
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