This multibagger chemical stock rises from ₹100 to ₹1000 in 6 years. Do you own?

Multibagger stock: Amid buzz in chemical sector in the primary market, some shares in this space have reached milestones as well. Aarti Industries shares are one of them. The multibagger stock yesterday hit 4-digit figure and today it has hit its fresh lifetime high of ₹1,071.55 apiece on NSE. It took near 6 years for the chemical stock to travel from ₹100 to ₹1000 per stock journey. However, stock market experts are still bullish on this chemical counter.

According to stock market experts, this multibagger stock still looks bullish and can go up to ₹1150 per equity stock levels in short-term. They said that Aarti Industries plants are running at high utilization levels with demand in the domestic market, which reflects strong future growth outlook.

Aarti Industries share price history

As per the share price history of this multibagger stock, this stock was among penny stocks till beginning of 2014. But, from February 2014, the penny stock from the chemical space started showcasing sharp upside movement. From March to September 2014, it surged from ₹22 (close price on 14th February 2014 on NSE) to ₹70.70 on NSE (close price on 19th December 2014) — giving multibagger return to the shareholders 2014. Afterwards the stock has been in uptick trend. It first hit triple digit figure in July 2015 leaving the penny stock tag behind.

The multibagger chemical stock continued its rising trend and kept on adding in upcoming trade sessions. Finally, on 4th October 2021, the chemical stock breached ₹1000 mark on closing basis giving fresh breakout for investors.

As per Axis Securities research report, "Aarti Industries plants are running at high utilization levels with demand in the domestic market for discretionary products having already reached pre-Covid levels while export markets are expected to resume normalcy by the end of H2FY22. Moving forward, focus on value-added products, production of more downstream products and better operating leverage is expected to drive the company’s margin and profitability. The company is exhibiting good earnings growth visibility over a medium to long term driven by 1) Capex coming on stream, 2) Commercialization of its key long-term contracts, 3) Growing contribution of value-added products, and 4) Structural shift in the global supply chains becoming independent of China."

Advising investors to buy this stock; Sumeet Bagadia, Chief Executive Director at Choice Broking said, "The stock has given fresh breakout at ₹1000 on closing basis. One can buy the counter at CMP and hold for the short term target of ₹1150 maintaining stop loss at ₹990."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.