Speciality chemicals are one of those sectors that have delivered multibagger returns in the last two years. The sector now trades at about 30 times FY24 earnings as against single-digit values a decade ago. Chemical companies continue to command a premium valuation as they may have the pricing power to offset any inflation in input cost, with a lag, as per analysts.
Deepak Nitrite is one such chemical stock that has delivered multibagger returns of 2921.65% in the last seven years. The stock was trading at ₹ 72.55 levels 7 years ago today and it is currently trading at ₹2289.90 per share. If an investor would have invested ₹ 1,00,000 in the share at that time, the value of their holdings in the share would have been about ₹ 30.21 lakhs today!
Amid a huge sell-off in the stock, during the last few months, the stock price fell from ₹2660 per share to ₹2058 levels. Later it recovered to the current levels.
In the last three years, alone, the stock gave multibagger returns of 742.10% as the share price surged from ₹269.45 per share to ₹2289.90 apiece. This means that ₹ 1,00,000 invested in the share a year ago is worth ₹ 8,42,100 today.
Deepak Nitrite is an Indian chemical manufacturing company that produces a spectrum of chemicals like agrochemicals, colourants, rubber, pharmaceuticals, speciality and fine chemicals.
The company has over 700 customers on all the continents with more than 100 products. Some of its major clients include BASF, Biocon, Reliance, Aarti Industries, Atul, Lupin and so on.
Disclaimer
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