Shares of this multibagger stock associated with the ‘chemical’ sector hit the 5 percent upper circuit in Thursday’s trading session after another agrochemical company, along with its wholly-owned subsidiary company, acquired a 48.50 percent stake in the company.
With a market capitalization of Rs 29 crores, the stocks of Daikaffil Chemicals India Limited opened its trading session on Thursday hitting the 5 percent upper circuit at Rs 47.88 apiece.
Such bullish sentiments in the company’s stock price were observed after Heranba Group, a listed Agrochemical company, along with its private wholly-owned subsidiary, acquired a 48.50 percent stake in Daikaffil Chemicals.
In a recent filing with the exchange, Heranba Industries, a listed company of the Heranba Group, intimated that it has, along with Mikusu India Private Limited, acquired 29.09 lakh shares of Daikaffil Chemicals India Limited for a 48.50 percent stake in the company at Rs 24 per equity share from the Promoters and other seller shareholders.
The consideration for the abovementioned transaction is via cash payment, and, the transaction was worth around Rs 6.98 crores.
The above transaction triggered an open offer leading the acquirer to keep an offer for 26 percent, i.e., 15.60 lakh equity shares, at an offer price of Rs 38.72 per equity share.
Keeping a purview of one year, the company’s stock has delivered multibagger returns of approximately 146 percent, i.e., if someone had invested Rs 1 lakh into the company’s stock a year ago, it would have converted to Rs 2.46 lakhs.
The company, during the last few financial years, has underperformed and reported a consistent downfall in profitability metrics such as the return on equity (RoE) as well as return on capital employed (RoCE). The former was reported at -17.97 percent during FY22-23, and, the latter was reported at -19.87 percent.
The latest shareholding data of the company portrays the Promoters holding a 31.19 percent stake followed by the Public (retail) investors holding the remaining 68.81 percent stake in the company.
Daikaffil Chemicals India Limited is a chemical manufacturing company based in India that produces stilbene derivatives, paper, detergent, naphthol grounders for pigments, etc. The company’s pigments are used for ink, fabric, coloring paint, foods, and other materials.
Written by Amit Madnani
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