This chemical company stock showed a mega trend after posting a net profit increase of 601 per cent for Q1FY23

Chemfab Alkalis share price gave 82 per cent return to investors in two months due to its strong quarterly results.

Following the June quarter results, the share price graph gave investors a J curve. Shares of Chemfab Alkalis have given its investors a return of 82 per cent over the past two months. The stock is increasing by more than 3 per cent every day over the last three days. Today, on August 24 the scrip began with a 5 per cent gap up at Rs 280. Due to the China Plus policy, agriculture boost, and import substitution, the chemical sector has displayed a massive trend in the current financial year. Chemfab Alkalis is one of the stocks in its sector with strong fundamentals. 

The company's revenue growth has been steadily rising. The top line for FY22 has increased to Rs 272 crore on a three-year compounded basis and has increased by 12 per cent. The operating margin of the company has increased considerably from FY21 to FY22, from 19.9 per cent to 26 per cent for the trailing twelve months, demonstrating increased efficiency. The net profit margins are likewise on the rise. The Q1FY23 had an exceptional year-over-year revenue increase of 109 per cent at Rs 98 crore.

The June quarter for FY23 became the game changer for the company. On YoY basis, operating profit growth for the first quarter of FY23 was massive, at 321 per cent. This is not the end of the raising of the large growing numbers. Its YoY Q1FY23 stated net profit growth is 601 per cent. Profit figures make it very clear that this stock is in a strong trend. Due to the company's excellent net cash flows, its cash position likewise seems to be strong. 

Chemfab Alkalis Ltd (CCAL) is one of the first major chemical organisations in India to introduce and implement innovative technologies successfully and stay at the forefront of the industry. With considerable investment in processes and quality improvement, CCAL’s operations have been at the cutting-edge of technology since its inception. The company has established the first membrane cell plant for Chloralkali production in India; it has also built a long legacy of sustainability and diversity in the workplace. Chemfab Alkalis produce Caustic Soda Lye in two grades (33 per cent and 48 per cent), Liquid Chlorine, Hydrogen Gas, Hydrochloric Acid, and Sodium Hypochlorite/Bleach Liquor.