Multibagger alert: This biofuel company soared over 250% in just 7 months!

An investment of Rs 1 lakh in the shares of this company would have turned to Rs 3.7 lakh in just 7 months!

Kotyark Industries Ltd, a biofuel company listed on the NSE SME platform, has turned into a multibagger stock. Since its listing in November 2021, the company’s shares have delivered returns of 277%, going from Rs 73.6 on 17 November 2021 to Rs 277.95 on 1 July 2022.

The company is approved by the biofuel authority of the Government of Rajasthan. It caters to the energy needs of trucks, buses, cars, boilers, industries, shipping, farming etc. Kotyark Industries has set up bio-diesel manufacturing facilities with a capacity of 100,000 KL per month from Multi Feedstock at the Swaroopganj, RICCO, Rajasthan in North India. The company intends to create large capacities by setting up similar plants either on a standalone basis or as Joint Ventures as required.

The company operates in various business segments such as biodiesel, C-9, Carbon Black Feedstock (CBFS), Liquid Paraffin Oil, and dewatering fluid.

The company is headed by Gaurang Shah and Dhurti Shah. The latter has extensive knowledge of the Bio-Fuel business. She has previously worked for Yamuna Bio Energy Pvt Limited. During her tenure at the Yamuna, the turnover, profits, capacity utilization, and R&D expansion of the company grew multifold.

On the valuations front, the company is trading at a TTM PE of 26.62x against the industry PE of 26.34x.

Looking at the financial performance in the last 4 years, the company’s topline has grown over 3x. Similarly, the PBIDT and PAT have grown by 14x. In FY22, the company delivered a brilliant ROE and ROCE of 32.44% and 40.65% respectively.

Overall, many companies operating in the biofuels and bioenergy space have done well in recent times. The growing consciousness of businesses and governments to reduce carbon emissions and look for cleaner energy alternatives has led to the growth of companies operating in the biofuels and bioenergy sphere.

At 12.21 pm, the shares of Kotyark Industries Ltd were trading at Rs 278, an increase of 0.02% from the previous closing price of Rs 277.95 on NSE. The stock has a 52-week high & low of Rs 402 and Rs 67.9, respectively on the NSE.