Chemical stock hits 5% upper circuit after promoter group increases stake in the company

The shares of a Microcap Chemical company engaged in the manufacturing of organic chemicals and intermediates and trading of chemicals hit a 5 percent upper circuit after promoter group of the company increased its stake. 

Share Price Movement

The shares of Daikaffil Chemicals India Ltd, with a total market capitalization of Rs 109.74 Crores on Friday, hit a 5 percent upper circuit at Rs 182.9 per share. The shares generated strong returns of 63 percent in the past year, 597 percent in the past three years and a return of 672 percent in the past five years respectively. 

What Happened 

On February 19, 2025, Daikaffil Chemicals India Ltd announced that SAMS Industries Private Limited, part of the promoter group, had purchased 8,316 equity shares from the open market. This increased the promoter group’s stake in the company from 2.43 percent to 2.57 percent, with the acquisition taking place on February 18, 2025.

On February 20, 2025, the company further disclosed that SAMS Industries Private Limited had acquired an additional 10,176 shares, bringing its total ownership to 2.74 percent as of February 19, 2025.

The Promoters of Daikaffil Chemicals India Ltd have increased holdings from 49.43 percent to 51.25 percent in Q3FY25. The company reported Revenue from operations of Rs 3.5 Crores and a Net Loss of Rs 0.36 Crores in the quarter ended Q3FY25.  

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Indian Chemical Industry

India is the 6th largest producer of chemicals globally and ranks 3rd in Asia, contributing 7 percent to the country’s GDP. The Indian chemical industry is currently valued at US$ 220 billion and is projected to grow to US$ 300 billion by 2030 and US$ 1 trillion by 2040. India holds a strong position in the global chemical trade, ranking 14th in exports and 8th in imports.

About Daikaffil Chemicals India Ltd

Daikaffil Chemicals India Ltd is involved in the manufacturing of organic chemicals and intermediates, as well as the trading of chemicals. Its primary products include various Stilbene Derivatives, Optical Brighteners for the textile, paper, and detergent industries, Naphthol Grounders for pigments, and intermediates for Pigment Red 170. 

The company is a major producer of Optical Brightening Agents (OBAs), which are widely used in industries such as cellulosic fibers, pulp and paper, and detergents and soaps.

Written By Adhvaitha Nayani 

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