Multibagger alert: This chemical company tripled investors' wealth in a year

The stock has delivered 7.6 times the returns generated by the S&P BSE 500 index.

Gujarat Narmada Valley Fertilizers & Chemicals Ltd, an S&P BSE 500 company, has generated exceptional wealth for its investors. During the last one year. The company’s shares jumped from Rs 326.95 on 7th April 2021 to Rs 897.20 on 6th April 2021, a rally of 174% YoY.

An investment of Rs 1 lakh in this stock last year would have turned to Rs 2.74 lakh today.

Established in 1976 in Bharuch, Gujarat Narmada Valley Fertilizers & Chemicals Ltd is a domestic company engaged in the business of chemicals and fertilizers. The company is a joint sector enterprise promoted by the Government of Gujarat and the Gujarat State Fertilizers and Chemicals (GSFC).

The company commenced its manufacturing and marketing operations as one of the world's largest single-stream ammonia-urea fertilizer complexes in 1982. Over the next few years, the company successfully commissioned different projects in fields as diverse as chemicals, fertilizers and electronics.

Today, the company has moved beyond fertilizers through a process of horizontal integration. Chemicals/petrochemicals, energy Sector, electronics/telecommunications and information technology form ambitious and challenging additions to its corporate portfolio.

The company’s stock price returns are 7.6 times the returns generated by the S&P BSE 500 index, of which the company is a part. During this period, the index has climbed from the levels of 19,868.99 on 7th April 2021 to 24,389.26 on 6th April 2022, a rally of 22.75% YoY.

The shares of the company are currently trading at a TTM PE of 10.15x as against the industry PE of 15.47x. In FY21, and delivered an ROE and ROCE of 12.30% and 16.05%, respectively.

At 12.55 pm, the shares of Gujarat Narmada Valley Fertilizers & Chemicals Ltd were trading at Rs 888, a decrease of 1.03% from the previous day’s closing price of Rs 897.20 on BSE. The stock has a 52-week high and low of Rs 912 and Rs 292.05 respectively on BSE.