This 2022 Multibagger Chemical Sector Stock Gains 40% In 4 Sessions

While in the last 4 days, Nifty small cap index in line with the headline index has seen correction, there is one stock from the chemicals space-Lords Chloro Alkali that has gained a massive close to 40% in just 4 sessions. As against the closing price of Rs. 123.45 per share, the stock has hit a new 52-week high in trade on June 9, 2022.

Lords Chloro: About the company

Lords Chloro Alkali Ltd. (LCAL) was incorporated in 1979, for producing and exporting a wide range of chemicals, which commanded the market in North India.

LCAL has built sophisticated manufacturing facilities at Alwar (Rajasthan), having locational advantage in chloro-alkali deficit region. A well integrated Caustic-Soda Plant is presently upgraded to 220 t.p.d. Laden, with a production potential to tap by-products, both functional and non-functional.

The company is strategically located in the heart of North India where the demand is always more than the supply. We supply our products to most of the paper, soap, dyes, chemicals and plastic industries based at the western part of UP, Haryana, Punjab & Delhi. Besides this, there is also in-house consumption of Chlorine

Stock price trajectory:

The stock's all time low price is Rs. 6.45 per share while its 52-week low and high price are Rs. 33.25 and Rs. 172.45. The stock has doubled investors money in just 3 months and its YTD returns are at an exorbitant 174%, while its 1-year return stand at 354%.

Company's strengths

The stock is attractive considering its intrinsic value. Also, another strength of the stock is its high TTM EPS growth. Also, its promoter holding is at high of over 70%.

Financials

The company's revenue from operations or sales are on a consistent increase and in the March ended quarter, revenue came in at Rs. 80.24 crore. Net profit at the concern has been increasing continuously and at a fast pace, moving from a profit figure of Rs. 0.51 crore a year ago to Rs. 17.04 crore in the just ended quarter.