With increase in net profit of over 88 per cent for Q1FY23; this multibagger chemical company generated returns of 200 per cent in just one year!

A Capex of Rs 350 crore has been approved by the board for the new greenfield facility in Pakhajan (Gujarat)

On Thursday, the shares of the chemical manufacturer Yasho Industries rallied 2.5 per cent on BSE after announcing financial results for the quarter ended June 30, 2022. In just one year, the stock soared more than 200 per cent while in just one month, shareholders have enjoyed gains of 20 per cent!  

Taking into account the company's financial performance, it reported a growth of 39.90 per cent from Rs 134.06 crore registered in Q1FY22, recording total revenue of Rs 187.55 crore in Q1FY23. It has reported strong EBITDA growth of 56.79 per cent with an EBITDA margin of 18.67 per cent. Comparing the net profit for the first quarter of FY23 to the same quarter last year, it increased significantly by 88.71 per cent from Rs 10.91 crore to Rs 20.59 crore.  

Yasho Industries Ltd is a pioneer in the production of fine & speciality chemicals, exporting to countries around the world including the USA, Europe, Asia, the Middle East, and Brazil. The business has an expansive & diverse customer base, which generates more than 60 per cent of its revenue from exports and maintains solid, long-lasting relationships with clients in more than 50 countries.  

Three of the company's well-equipped manufacturing facilities are located in Vapi (Gujarat). The business wishes to expand capacity at a brand new greenfield facility in Pakhajan (Gujarat). A Capex of Rs 350 crore has been approved by the board for the project's first phase. In the upcoming months, the company anticipates receiving government approval for its environmental clearance.  

Given the company's long-term prospects, keep a close eye on this stock for the upcoming sessions.