This Multibagger Bio Diesel Stock Is Surging In A Falling Market, Should You Buy?

Through the week, we have been seeing solid activity in the stock of Bio diesel player Kotyark. On Friday, when the Sensex fell more than 1,000 points, the stock was up a huge 7%.

Kotyak Industries: Has turned out to be a huge multibagger

Kotyark Industries came-up with an IPO in October last year at Rs 51 and has since rallied to Rs 292. The company is an approved manufacturer of Biodiesel and has received Letter of Intent from the Biofuel Authority, Rural Development, Panchayat Raj Department, and Government of Rajasthan. The company has also received permission from the Government of Rajasthan for setting up Mobile Retail Outlet for sale of Bio-Diesel and has entered into Mobile Retail Outlet Agreement with various parties for this. The company has a bio-diesel manufacturing capacity of 100,000 KL per month from Multi Feedstock at Rajasthan, India.

What is bio diesel?

Biodiesel is a liquid fuel, technically known as a monoalkyl ester, made from oils and alcohols. Biodiesel is a renewable fuel that can be produced in any climate using already developed agricultural practices. Biodiesel is made from renewable resources such as vegetable oils, or other types of biomass. B100 is 100% biodiesel. Biodiesel is widely available in both its neat form (B100) and in blends with petroleum diesel. Unlike conventional diesel, biodiesel is non-toxic, biodegradable and safer to ship. Spills do not require emergency response clean-up activities.

Should you buy the stock of Kotyark Industries?

The company is listed on the SME segment of the NSE. There are no March quarterly numbers that are available, but, if you see the numbers for the period ending Dec 31, 2021, they are pretty decent. The basic EPS came to around Rs 5.90, on a very small equity capital. We have to extrapolate that an arrive at an EPS of Rs 24 or so for the company. Kotyark Industries has a very small equity capital and promoters hold 72% of the same. It is hard for us to say, whether to buy the stock as would need more data to analyze the stock, including the annual reports and numbers for the March quarter. Nonetheless, what we feel is that investors who want to take the risk could buy small quantities like 100 or so shares. However, as such we do not have, a buy, sell or hold on the stock. 

Disclaimer

This is an extremely small cap stock and prices can be volatile. Please understand the risk before investing. Neither Greynium Information Technologies, nor the author, would be responsible for any losses based on a decision reading the above article. Every effort has been made to provide accurate information and readers should understand the inherent risks before investing in the markets.