Consistent Compounder: Only buyers seen in this multibagger micro-cap chemical company that became 20x in little over two years!

The shares of this multibagger stock are seen locked in the upper circuit in the morning session with no sellers.

The shares of Jyoti Resins are seen gaining on the bourses, in line with the overall markets on Monday trading session on an intraday basis. The shares of multibagger Jyoti Resins are seen locked in the upper circuit in the morning session with no sellers. 

The shares of Jyoti Resins are trading higher by 5 per cent at Rs 2589 per share. In one month, the Jyoti Resins shares have jumped by 9 per cent, thus performing in line with 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 1,963 per cent in the last two years! During this period, the company’s share price steadily increased from Rs 117 on June 2, 2020, to Rs 2414.60 on June 2, 2022.  

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 49.91x, as against the PE of 98.18x 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.  

Jyoti Resins shares are trading close to its all-time high levels. Investors can keep this multibagger share on the watchlist as a price volume breakout after long consolidation may take the stock price higher!