Multibagger alert: This small-cap chemical stock surged over 300% in a year!

An investment of Rs 1 lakh in the shares of this company one year ago would have turned to Rs 4.15 lakh today.

TGV SRACC Ltd, an S&P BSE SmallCap company, has delivered multibagger returns to its shareholders in the last 1 year. During this period, the company’s share price jumped from Rs 34.4 on 06 September 2021 to Rs 142.75 on 02 September 2022, an increase of 315% in the one-year holding period. An investment of Rs 1 lakh in this stock one year ago would have turned to Rs 4.15 lakh today. 

In contrast, the S&P BSE SmallCap index, of which the company is a part, has surged by a mere 4.85%. In the last 1 year, the index has climbed from the level of 27,466.66 on 06 September 2021 to 28,800.82 on 02 September 2022.

Sree Rayalaseema Alkali and Allied Chemicals (SRACC) is the flagship company of TGV Group. SRACC is a leading producer of Chlor-Alkali products. The company also manufactures Castor Derivatives and Fatty Acids. The company is also in the business segment of Chemicals, Oils & Fats.

In the recent quarter Q1FY23, on a standalone basis, the company’s net revenue increased by 137.78% YoY to Rs 596.07 crore. Owing to a relatively slower rise in expenses, the PBIDT (ex OI) grew 361% while the PAT grew 1391% YoY at Rs 147.80 crore.

The company is currently trading at a TTM PE of 5.72x against the industry PE of 36.83x. In FY22, the company delivered an ROE & ROCE of 19.88% and 22.93%, respectively.

Today, the scrip opened at Rs 145.50 and has touched a high and low of Rs 147 and Rs 142.10, respectively. So far 1,35,803 shares have been traded on the bourses. 

At 11.33 am, the shares of TGV SRACC Ltd were trading at Rs 142.60, a decrease of 0.11% from the previous closing price of Rs 142.75 on BSE. The stock has a 52-week high & low of Rs 153.50 and Rs 34.05, respectively on BSE.