Multibagger Stock: This small-cap chemical company delivered fantastic returns of over 300 per cent in the last 2 years!

An investment of Rs 1 lakh in the shares of this company two years ago would have turned to Rs 4.44 lakh today.

Shares of Primo Chemicals Limited jumped from Rs 18.19 on April 05, 2021, to Rs 80.93 on March 31, 2023, an increase of about 344 per cent in the last two-year holding period. The company is a part S&P BSE SmallCap Index. The stock has given multibagger returns during the previous two years.  

An investment of Rs 1 lakh in the shares of this company two years ago would have turned to Rs 4.44 lakh today.    

In Q3FY23 on a consolidated basis, the company's net revenue increased by 43 per cent YoY to Rs 187.6 crore. The bottom line decreased by 32 per cent YoY to Rs 29.15 crore in Q3FY23. The company is currently trading at a TTM PE of 11.93x against the industry PE of 26.04x. The company achieved ROCE and ROE of 47 per cent and 38 per cent in FY22. The company is a constituent of group A stocks with a market capitalisation of Rs 1,875.49 crore.  

On Wednesday, the stock opened at Rs 77.39, with a high and low of Rs 79.50 and Rs 76.30. The stock has a 52-week high and low of Rs 100.90 and Rs 60.10, respectively on BSE.    

Primo Chemicals Ltd's main product is Caustic Soda Lye (300 TPD) and by-products are Hydrochloric Acid, Liquid Chlorine, Sodium Hypochlorite and Hydrogen gas. The company is the largest producer of Caustic Soda in the North India region.