The Indian share market has scripted many historic feats in the last one decade, with the benchmark BSE Sensex making a significant jump to scale a new high of 62,000-mark, from 16,150 points on January 12, 2012. The 30-share benchmark index has gained 74% in the last 10 years. During this period, a large number of shares have entered the list of multibagger stocks, delivering skyrocketing returns to investors. One such stock is lesser-known chemical company Alkyl Amines Chemicals, a global supplier of amines and amine-based chemicals to the pharmaceutical, agrochemical, chemical, and water treatment industries, which grew 237 times in the last one decade.
Alkyl Amines Chemicals, which is among the key chemical producers listed on the BSE, has delivered unimagined returns of 23,600% to its shareholders over the past ten years, thanks to healthy long-term growth, rise in global chemical prices, and decline of Chinese manufacturers. With a market capitalisation of ₹19,243 crore, the midcap stock saw its shares surging from ₹16 on January 12, 2012, to ₹3,791 per share in intraday trade today.
If a person had invested ₹1 lakh in this multibagger stock at ₹16 apiece on January 12, 2012, it would have become ₹2.37 crore at present. However, investors should not get carried away by astonishing returns, one must do due diligence before investing in stocks.
This share surged 94% in one year, 2,850% in 5 years
Not just in the long-term period, this stock has also given decent returns to its investors in the short-term horizon. It has almost doubled investors’ money in the past one year, from ₹1,924 on January 12, 2021, to ₹3,795 in intraday trade today. The stock has gained as much as 2,850% over a five year period. In the last one month, it has risen 16.5% and 2.4% in the past one week.
On Wednesday, Alkyl Amines Chemicals shares opened higher for the third straight session and gained as much as 3.88% to hit an intraday high of ₹3,791.95. The stock was trading higher than 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, albeit at a discount compared to its average historical valuation, as per stock research platform Markets Mojo.
The stock currently trades 20% lower than its 52-week high of ₹4,740 touched on July 27, 2021. It touched a 52-week low of ₹1,830 on January 28, 2021.
On the volume front, 2,028 shares worth ₹75.78 lakh changed hands over the counter in the first two hours of the day’s trade as compared to the two-week average volume of 11,000 scrips. The stock has witnessed a drop in investor participation with delivery volume falling by 65.5% to 18,530 on January 10, 2022, against a 5-day average delivery volume.
On the financial front, Alkyl Amines Chemicals has delivered decent results in the last fiscal, while the new fiscal was a mixed bag for the chemical company. The Mumbai-based firm, which manufactures aliphatic amines such as ethylamine and methylamine, amine derivatives and specialty chemicals, had reported 37.2% growth in net profit to ₹295.34 crore for the financial year 2020-2021, compared to the previous fiscal. The revenue from operations surged 25.1% to ₹1,242.43 crore in FY21, over the year ended March 31, 2020. Its board had also recommended a final dividend of ₹6 per equity share for FY21.
In the June quarter of the current fiscal (Q1 FY22), the company’s net profit rose 48.81% to ₹78.54 crore as against ₹52.78 crore during the previous corresponding quarter. Sales grew 59.82% to ₹391.81 crore, from ₹245.15 crore during the previous quarter ended June 2020.
For the second quarter ended September 30, 2021, Alkyl Amines Chemicals reported a 17.4% year-on-year decline in consolidated net profit at ₹54.09 crore, due to supply chain constraints and higher inputs costs. The total revenue, however, climbed 19.71% on a consolidated basis to ₹348.69 crore, compared to the year-ago period.