Multibagger alert: This speciality chemical company delivered 10x returns to its shareholders in two years!

An investment of Rs 1 lakh in the shares of this company two years ago would have turned to Rs 11.01 lakh today.

Yasho Industries Ltd, a small cap speciality chemicals company, has delivered over 1000% returns to its investors in the last 2 years. During this period, the company’s share price appreciated by 10x, going from Rs 118.80 on 29 June 2020 to Rs 1309.10 on 24 June 2022.

Yasho Industries Ltd is a global manufacturer and supplier of speciality and fine chemicals. The company manufactures performance chemicals for industries such as rubber & latex, food & flavours, perfumery, lubricants and other speciality applications.

An investment of Rs 1 lakh in the shares of this company two years ago would have turned to Rs 11.01 lakh today.

The company’s share price appreciation derives support from a brilliant financial performance. In the last two years, the company’s topline has doubled, going from Rs 300 crore in FY20 to Rs 624 crore in FY22. The PBIDT has become nearly 2.5x, going from Rs 42.9 crore to Rs 103.7 crore in the two years. Similarly, the company’s bottom line has become 4.3x, from Rs 12.04 crore to Rs 52.73 crore.

Looking at the valuations, the company is currently trading at a TTM PE of 28.3x, as against the industry PE of 31.79x. In FY22, the company heavily outperformed its peers by delivering an ROE & ROCE of 41.7% and 28.7%, respectively.

Looking back, the last two years have been great for chemical companies. Many of the companies have delivered multibagger returns to their shareholders, becoming investors' favorites. China plus one strategy, strong domestic demand, demand from global customers for niche products, and the government’s Aatmanirbhar Bharat initiative has played out well for the company.

At 12.47 pm, the shares of Yasho Industries Ltd were trading at Rs 1,340, an increase of 2.36% from the previous closing price of Rs 1,309.10 on BSE. The stock has a 52-week high & low of Rs 2099 and Rs 412.60, respectively on BSE.