INSUBCONTINENT EXCLUSIVE:
Shares of a smallcap company, which has multiplied investor wealth by 26 times in last 10 years, has jumped as much as 34.32 per cent in
just two sessions over Tuesday and Wednesday in a depressed market.
Analysts say perhaps a fresh rally has just begun on the counter
The stock is of Navin Fluorine International, a company that manufactures specialty fluorochemicals.
The Rs 7,900 crore market-cap company
on Tuesday bagged a large order worth Rs 2,900 crore ($410 million) from a global company for manufacture and supply of a high performance
product (HPP).
Navin Fluorine said the contract is for seven years and this product is not part of its existing portfolio
Navin Fluorine will be investing Rs 365.50 crore to set up a dedicated manufacturing facility and spend approximately Rs 71 crore to set up
a captive power plant to deliver the order
Supplies are expected to commence from Q4 of FY22, the company said.
Following the order, the scrip hit the 20 per cent upper circuit on
Tuesday after a nearly 12 per cent gain on Wednesday, when it had hit a high of Rs 1,629.
Brokerage Emkay Global said the big order win
the stock with a price target of Rs 1,600, which it has already crossed.
As per Reuters data, most analysts are bullish on the multibagger
2,479 per cent return in last 10 years
Year to date, the scrip has made investors richer by 59 per cent.
A shutdown of factories in China due to coronavirus also added to the
attraction of the Indian specialty chemical suppliers, especially Navin Fluorine
mildly positive for its margin and bottom line
earnings call did indicate that it is seeing some increase in inquiries and they should be able to pass through the increased fluorspar
will soon be included in Nifty Smallcap100 index from Thursday, which may result in some more money coming into the counter