Consistent Compounder: Jyoti Resins hits all-time high; do you hold this multibagger?

Ever since its listing, the shares of this multibagger stock have delivered 17,834.19 per cent!

The shares of Jyoti Resins are seen gaining on the bourses, in line with the overall markets on Friday trading session on an intraday basis. The shares of multibagger Jyoti Resins touched an all-time high of Rs 2820 apiece on August 05. 

As of 2.52 pm today, the shares of Jyoti Resins are trading higher by 2.95 per cent at Rs 2775 per share. In one month, the Jyoti Resins shares have jumped by 12.63 per cent, thus outperforming the markets. BSE Sensex has jumped over 9 per cent in the past one month. The shares of Jyoti Resins, however, have more than doubled in 2022 itself, and have caught investors' attention.  

Jyoti Resins and Adhesive Ltd is a domestic company engaged in the business of synthetic resin adhesives, and has given its investors stellar returns of 1521 per cent in the last two years! During this period, the company’s share price steadily increased from Rs 171.15 on August 5, 2020, to Rs 2775 on today (August 5, 2022).

In recent few trading sessions, the shares of Jyoti Resins have been gaining with a spurt in volumes indicating fresh buying interest in the consistent compounder that has delivered a CAGR of over 93 per cent per annum in the past five years. Jyoti Resins is trading at a cheaper valuation when compared to its competitors and is almost debt free. 

The company manufactures various types of wood adhesives (white glue) under the brand name EURO 7000. Launched in the year 2006, the brand EURO 7000 is now the second-largest selling wood adhesive (white glue) brand in India in the retail segment.   

Currently, the company is trading at a TTM PE of 42.75x, as against the PE of 102.34x of Pidilite Industries Ltd, which is the market leader in the organized adhesives industry. 

In FY22, Jyoti Resins delivered an exceptional ROE and ROCE of 43.21 per cent and 57.95 per cent, respectively. In contrast, Pidilite delivered an ROE and ROCE of 21.29 per cent and 27.25 per cent, respectively.   

Long-term investors can keep Jyoti Resins on their watchlist as the growth trajectory is intact for this multibagger that may increase market share in coming quarters for its products.