The speciality chemical manufacturer reported a net profit of Rs 18.83 crore in the quarter ended on March 31, 2021, a jump of 67.68 per cent compared to a net profit of Rs 11.23 crore in the same quarter previous year.
Shares of Fairchem Organics soared 20 per cent to Rs 1121.50 on Tuesday, scaling its new 52-week high. BSE Sensex was trading at 62.43 points or 0.12 per cent lower at 52,266.08 at the time of writing this report. The stock settled at Rs 934.50 on Monday.
Sales rose 78.43 per cent to Rs 159.09 crore in the quarter ended March 2021 as against Rs 89.16 crore during the previous quarter ended March 2020.
Fairchem Organics’ shares have delivered 73 per cent return in the last three months and the counter is up by 80 per cent on the year to date basis.
For the full year, net profit rose by 22.42 per cent to Rs 42.48 crore in the year ended March 2021 as against Rs 34.70 crore during the previous year ended March 2020. Sales for the fiscal increased 29.43 per cent to Rs 395.79 crore in the year ended March 2021.
“The valuation ratios are also looking favourable, ROCE and ROE have been below its competitors. Therefore, it is better to choose stocks from this space that are comparatively performing better and are emerging as market leaders,” said Likhita Chepa, CapitalVia Global Research
