BackChemical stock rises 14% despite weakness in stock market. Here's why?
Stock market today: According to stock market experts, this rise in the chemical stock is mainly due to its strong Q3 numbers and expected sops for the sector in upcoming Union Budget 2022
PremiumStock market today: Despite weakness in the Indian stock market, Sharda Cropchem share price today has appreciated more than 14 per cent. The small-cap agro-chemical company stock today opened with an upside gap of around ₹41 per share and went on to climb to its new 52-week high of ₹455 today. According to stock market experts, this rise in the chemical stock is mainly due to its strong Q3 numbers and expected sops for the sector in upcoming Union Budget 2022.
Speaking on the reason for such rise in small-cap chemical stock despite weakness in stock market today, Saurabh Jain, Assistant Vice President — Research (Retail Equities) at SMC Global Securities said, "Sharda Cropchem is an agro-chemical company and this sector is bullish on expected sop announcement by the Union Finance Minister Nirmala Sitharaman in upcoming Union Budget 2022. Apart from this, the company has reported strong quarterly numbers. In Q2FY22, Sharda Cropchem reported around ₹32 crore consolidated profit whereas this profit went up to ₹102 crore in Q3 FY2021-22." However, Saurabh Jain of SMC Global Securities said that those who hold this agro-chemical counter should book profit and exit as strong selloff may trigger anytime in the small-cap stock.
Echoing with Saurabh Jain's views; Sumeet Bagadia, Executive Director at Choice Broking said, "The stock has witnessed volume buying in last two trade sessions but selling on highs is also being witnessed in the counter. So, one should avoid taking fresh position in top gaining share today and those who have this stock in their portfolio, should book profit and exit at current levels."
In its communication with BSE dated 22nd January 2022, Sharda Cropchem announced ₹3 per share dividend to its shareholders citing, "The Board of Directors considered and declared Interim Dividend at the rate of ₹3.00 per equity share of face value of ₹10.00 each for Financial Year 2021-22. The record date for the purpose of Interim Dividend will be Wednesday, February 02, 2022. The Interim Dividend shall be paid or dispatched on or before Tuesday, March 01, 2022."
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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