In the last 3 years, the stock has surged 53% and gave returns of 103% in the last five years.
Bharat Rasayan, a smallcap company with a market capitalization of about Rs 3,798 crore, is a R&D driven chemical manufacturing company. It is engaged in the production of fatty acid anhydrides, grignard reagents, pharma intermediates, esters and solvents on a regular basis.
The company is also one of the largest manufacturer of cosmetic ingredients with primary focus in the personal care (skincare, haircare and anti-bacterial ) preservatives.
It has an EPS of 383 on a trailing twelve month (TTM) basis and the stock is currently trading at a PB of 4.56.
According to the latest shareholding pattern available with the exchanges, promoters own majority of the stake at 74.79%, while the rest of 25.21% lies with the public shareholders.
Among the public shareholders, mutual funds don’t have any stake in the company, while retail investors have a combined holding of 12.20% in the company.For the quarter ended March, Bharat Rasayan clocked revenues of Rs 305.8 crore. PAT stood at Rs 32.6 crore.
Technical outlook – What should investors do?
Analysts say Bharat rasayan is trading at a discount when compared with its peers.
“The demand in this sector also looks good. Margins were under pressure from the last 3 quarters, which too seem bottomed out. The stock has a strong support near 8200 to 8500. Investors are advised to buy on dips near the support levels with a stop loss of 7900,” said Ravi Singhal, CEO, GCL Broking.
With data inputs from Ritesh Presswala
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)