Rs 5,000 crore projects: This multibagger chemical company is to invest a huge amount in various projects!

Today, shares of the company surged 10.74 per cent with a spurt in volume by more than 8.71 times on BSE.

Deepak Nitrite Ltd announced that the company's wholly owned subsidiary, Deepak Chem Tech Limited (formerly known as Deepak Clean Tech Limited) has signed a Memorandum of Understanding (MoU) with the Government of Gujarat with an intent to invest around Rs 5,000 Crores in the next 4 years for setting up projects to manufacture speciality chemicals, phenol/acetone and eisphenol at Dahej/Nandesari, in the State of Gujarat.

On Wednesday, Deepak Nitrite Ltd, one of the Top Gainers on BSE, witnessed a surge of 10.74 per cent, reaching an intraday high of Rs 2,159.50 per share. By the closing bell, the company's shares were trading at Rs 2,136.40 per share, up by 9.58 per cent.

Deepak Nitrite Ltd specializes in the manufacturing of basic intermediates, fine & speciality chemicals, performance products, and phenolics. The share of the company saw a spurt in volume by more than 8.71 times on BSE.

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In terms of financials, the company holds a market cap of over Rs 29,000 crore, showcasing a 3-year compound annual growth rate (CAGR) of 65 per cent. It has reported positive numbers in its Quarterly Results (Q4) and annual results (FY23). Furthermore, Deepak Nitrite Ltd maintains a strong track record of return on equity (ROE), with a 3-year ROE of 32 per cent.

The stock has delivered remarkable returns, with multibagger growth of 335 per cent in just 3 years, over 750 per cent in 5 years, and an astonishing 7,600 per cent in 1 decade. Investors should keep an eye on this Large-Cap chemical stock.