Rs 808 to Rs 2,753: This chemical stock rose over 240% in one year, know about it

Multibagger stock: In the last 12 months, investors’ money in Deepak Nitrite shares has more than doubled. The stock rose 6 percent to an all-time high of Rs 2,753.7 on the BSE on Tuesday. This came after some media reports said that China’s electricity shortage would affect chemical production by 25%.

Deepak Nitrite is an intermediate chemical company involved in the diversified business of basic chemicals, fine and specialty chemicals and performance products. Indian specialty chemicals makers may benefit from power shortage.

This multibagger stock has increased from Rs 808 to Rs 2,753.7. It has gained 185 per cent since the beginning of this year and has increased by 241 per cent in the last one year.

Long-term investors have made huge gains by investing in this chemical stock as it has gained 1,986 per cent in the last five years and 15,242 per cent in the last ten years. With a market capitalization of Rs 36,703 crore, the shares are trading higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages.

According to Marketsmojo, the company has declared positive results for the last 4 consecutive quarters and has strong debt servicing ability as the company has a low EBITDA ratio of 1.29 times. It has strong long term fundamental strength with an average return on capital employed (ROCE) of 30.34%.

The company reported a net profit of Rs 302.63 crore for the quarter ended June 2021, as against Rs 98.95 in the year-ago period. Revenue from operations grew 126 per cent to Rs 1,526.22 crore in the June-ended quarter, from Rs 674.49 crore a year ago.

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