Shares Of 2 Small Cap Chemical Stocks Showing Rising Trend, Buy For 57% Return: Nuvama

Leading brokerage firm Nuvama is bullish on 2 Chemicals Sector stocks namely Balaji Amines Ltd (BAL) and Neogen Chemicals. If you buy the shares of these 2 chemicals sector stock, you can get potential 57% return.

According to the analyst, "The softening of prices of key chemicals seems to have impacted the valuation of key industry players as reflected in the average PE ratio contracted to 29x as compared to 3-months/6months/1-year averages of 33x/34x/36x." Check key details below:

1. Buy Balaji Amines

The last trading price of the stock is Rs 2705 apiece with an intraday fall of 0.26%. Nuvama has assigned buy call with a target price of Rs 4250 apiece.

If you buy Balaji Amines shares, you can get potential 57% return.

Stock Performance & Return: The stock's 52-week high is Rs 3936 apiece and 52-week low is Rs 2592 apiece, respectively. The company has a market capitalisation of Rs 8766 crore. The small cap stock has given 647% return in last 3-years and 324% return in last 5-years. The shares have declined 16% in last 1-year.

Financial Performance: The company for the quarter ended September 30, 2022 declared a consolidated total income of Rs 630 crore, down a little over 6% from last quarter total income.

About The Company: BAL commenced manufacture of Methyl Amines in the year 1989 and subsequently added facilities for manufacture of Ethyl Amines and other derivatives of Methyl Amines and Ethyl Amines. BAL has been consistently adding capacities and fine tuning process to provide quality products at lowest cost to the customers, according to its official website.

2. Buy Neogen Chemicals

The last trading price of the stock is Rs 1240 apiece. Nuvama has assigned a target price of Rs 1700 apiece implying a potential return of 37%.

The company has a market capitalisation of Rs 3092 crore.

Stock Performance & Return: The stock's 52-week high is Rs 1933 apiece and 52-week low is Rs 1201 apiece, respectively.

The stock has declined 26% in last 1-year and given a return of 252% in last 3-years.

Financial Performance: It declared its consolidated total income for the quarter ended September 30, 2022 at Rs 148 crore, down 0.17% from last quarter total income.

About The Company: Neogen Chemicals Ltd. is a over 30-year old company specialising in Bromine based compounds, Grignard Reagents and Inorganic Lithium Salts.

Disclaimer

The stocks have been picked from the brokerage report of Nuvama. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.