According to BSE details, the small cap stock has delivered a multinagger return of more than 145 per cent in the last to two years.
Stock Market News: The stock market has produced a plethora of multibaggers. The small cap space has been buzzing for the past few years as it has multiplied investors wealth multiple times. One such stock from the small cap space that has delivered multibagger returns is Sadhana Nitro Chem. The small stock is mainly engaged in the commodity chemicals industry.
According to BSE details, the small cap stock has delivered a multinagger return of more than 145 per cent in the last to two years. It has advanced over 550 per cent in three years as against 113 per cent increase in the S&P BSE Commodities.
The small cap company with a market cap of Rs 2,036.50 crore has skyrocketed a massive 20,500 per cent in the last 10 years. The company in a regulatory filing said that it has commissioned certain plants recently which brought about increased depreciation and interest costs.
Speaking about the profitability impact of the new plants, it said, “At present, the revenue generated from these plants doesn’t fully offset these costs. However, as the volumes increase, these costs will be absorbed more effectively, paving the way for enhanced profitability, evident from our EBIDTA numbers which are at an encouraging 20 per cent.”
It added the dip in sales pricing in Q1FY24 was due to China’s prompt price reductions in line with falling raw material costs. As raw material prices in China stabilize and India catches up with these adjustments, the profitability margins will also seen an improvement.
A component of S&P BSE SmallCap, Sadhana Nitro shares on Thursday finished in green even, debunking the weak trend in the domestic market due to sell-off in IT stocks.