₹56 to ₹1,367: Multibagger chemical stock turns ₹10,000 to ₹2.44 lakhs in 5 years

During the trading session of Friday, the shares of a manufacturer of synthetic resin adhesives and the second largest selling wood adhesive (white glue) brand in India in the retail segment surged nearly 0.4 percent to hit an intraday high at Rs. 1,382 on BSE. 

With a market capitalisation of Rs. 1,639.8 crores, the shares of Jyoti Resins and Adhesives Limited closed in the red at Rs. 1,366.5, down by nearly 0.7 percent, as against its previous closing price of Rs. 1,376.25. 

Stock Performance 

The stock has delivered multibagger returns of around 2,317 percent over a five-year period, spanning from Rs. 56.55 in December 2019 to the current stock price level of Rs. 1,367. 

This indicates that if an investor had invested Rs. 10,000 in the stock five years ago, it would have gained to nearly Rs. 2.42 lakhs. 

In the previous six months, the stock has delivered negative returns of nearly 4.6 percent, as well as around 12.2 percent returns in the last one year. So far in 2024, the shares of Jyoti Resins and Adhesives have given about 12 percent of negative returns. 

Financials: 

Jyoti Resins and Adhesives reported a marginal growth in revenue from operations, experiencing a year-on-year increase of nearly 3.6 percent, rising from Rs. 63 crores in Q2 FY24 to Rs. 65.2 crores in Q2 FY25. 

Similarly, during the same period, the company’s net profit increased from Rs. 16.2 crores to Rs. 16.3 crores, representing a slight growth of just about 0.7 percent YoY. 

In contrast, EBITDA for Q2 FY25 decreased by about 9.3 percent YoY to Rs. 19.4 crores, down from Rs. 21.4 crores in Q2 FY24, while the EBITDA margins fell by 426 bps to 29.73 percent, from 33.99 percent, over the same period. 

EBITDA margin of 29.7 percent led by extra margins passed on to the channel, higher spending towards marketing, visibility and new market development. 

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About the company: 

Established in 1994, Jyoti Resins and Adhesives Limited, one of the leading manufacturers of synthetic resin adhesives in India, is engaged in the business of manufacturing various types of wood adhesives with different formulations, such as waterproof, anti-termite, fast-drying, weather-proof and anti-fungal adhesives. 

The company launched its brand “Euro 7000” in 2006, and is now the second largest-selling wood adhesive (white glue) brand in India in the retail segment. 

Written by Shivani Singh

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