Multibagger Stock: This Pidilite-promoted chemical company has trebled investor's money in a year

In today’s session the stock logged upper circuit defying market weakness.

Vinyl Chemicals (India) Ltd, a Parekh Group Company, was promoted by Pidilite Industries Limited (PIL) in 1986 and engaged in the manufacturing of Vinyl Acetate Monomer (VAM). In 2007, the said manufacturing unit was de-merged into PIL, its Promoter Company, for strategic reasons. Post-demerger, the company's main focus remains on trading VAM, which is now imported from various Global suppliers and traded in India.   

In FY 2021-22, Vinyl Chemical generated 82 per cent of its revenue by sale of chemicals (VAM) to its promoter company, Pidilite Industries Ltd. Vinyl Chemicals has a market capitalisation of Rs 1227 crore and is currently trading at a TTM PE of 31.20. Pidilite Industries holds a 40.64 per cent stake in the equity capital of the company. 

The shares of this chemical trading company have given mindboggling returns in the last one year with a surge of 203 per cent. In last six months, the stock has zoomed 159 per cent, while in the last one month the rally has been of 30 per cent wherein the stock has logged a fresh all-time high of Rs 952.10 on September 19. 

Shares of Vinyl Chemical have defied the market gravity wherein the benchmark S&P BSE Sensex which had shrunk by 5.2 per cent in the last one year while S&P BSE Smallcap has managed to gain 0.19 per cent in the same period.  

In the intraday trades, the shares of Vinyl Chemicals (India) Ltd hit the upper circuit of 5 per cent at Rs 671.30 and closed at Rs 671.25.