Multibagger Fertilizer stock jumps 5% and reaches new 52-week high; Are you holding it?

The shares of Fertilisers and Chemicals Travancore Limited gained as much as 5 per cent till the afternoon on Thursday and reached a new 52-week high of Rs 173.95. 

The shares of the company were trading at Rs 55 a piece on NSE in 2020 around the same time. From there it has spiked up to the current levels logging a multibagger return of 207 per cent. 

The stock has been on an upward trend and has gained approximately 13 percent in the past five days. In the span of a month, the stock has zoomed by 33 percent while in two months it has gained 56 percent. 

The Fertilisers and Chemicals Travancore Limited, abbreviated as FACT, is an Indian central public sector company under the ownership of the Ministry of Chemicals and Fertilizers. It was the first large-scale fertilizer plant in India. 

The company reported a total revenue of Rs 1,935 crore in Q2FY23 which was an increase of 148 per cent from Rs 781 crore in the same quarter a year earlier. In the previous quarter, their revenue stood at Rs 1,292.37 crore. 

In the quarter under review, their net profit was Rs 144.6 crore which was an increase of 297 per cent from Rs 36.45 crore in Q2FY22. On a sequential basis, their net profit increased 6 per cent from Rs 136.99 crore. 

The promoters hold a 90 per cent stake in the company and have pledged zero shares. The mid-cap company has a market capitalization of Rs 11,016 crore. 

However, it should be noted that the company has high debt on its balance sheet. The debt-to-equity ratio as of FY22 is 9.53. 

Written by Anoushka Roy

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