Multibagger Stock: An investment of Rs 1 lakh in this stock became Rs 235 lakh in 10 years.

Alkyl Amine has swelled the wealth of long term investors with strong deliverables.

The Indian stock market is reaching new heights in each trading session and speciality chemicals have been at the gainer’s end.

The multibagger stock of Alkyl Amine has risen from Rs 1228 to Rs 4010 in the last one year, a rise of around a 226% in this period. Likewise in year-to-date time, this multibagger stock has risen from Rs 1552.20 levels logging around a 158% rise in 2021.

The gravity of the exponential price returns delivered by the company can be exhibited on a timeline given as under:

• One year ago, an investment of Rs 1 lakh would have fetched an investor Rs 2.6 lakh approximately.

• 5 years ago, an investment of Rs 1 lakh would be worth around Rs 28 lakh.  

• 10 years ago if the same Rs 1 lakh was to be invested, it would have turned into Rs 235 lakh.

*The above phenomenal returns would have been only possible for investors who would have stayed invested in this multibagger for the said period under consideration.

The obvious question that surfaces is, how this chemical company delivered such astounding returns?

Alkyl Amines Chemicals Ltd (AACL) is a public Limited Listed Company promoted in 1979. The company is a global supplier of amines and amine-based chemicals to the pharmaceutical, agrochemical, rubber chemical and water treatment industries, among others. It has established a leading position in the domestic market and presence in the international market with a reputation for reliable service and quality products.

Its product line boasts of more than 100 products mostly developed in-house. It is the global leader of Ethyl Amines, one of the leading players globally in DEHA, one of the largest producers of DMA-HCL.

It has over the years also diversified into value-added products like amine derivatives and speciality chemicals.

The bull rally may be triggered by the anticipation of rising demand for amine producers for vaccines. Almost 75% of amines are consumed by pharmaceuticals (50%) and agrochemicals (25%). The positive sentiment has been supported by the long-standing fundamentals of the company over the years defying any windfall gains that are short-lived.

The following table exhibiting the average financial performance of the company over five year period (from 2017 to 2021) validates its strength.