Identifying a good penny or small cap stock early in their life cycle and making good investment at a early stage and holding on to that investment can help in wealth creation over the long term. In fact with this principle most ace investors worldwide include Benjamin, Warren Buffet work.
So, here are stocks to focus on importantly the focus can be given the fact that these companies have growth prospects and so with the reward looking good, they are also high on risk. Also, another factor is that these companies tend to show growth with the economy.
This is a small cap company priced at Rs. 101.9 as at the close of March 11, 2022. Since 1986, the company is into manufacturing and supplying of polyurethane raw materials and blended systems for variety of industries such as appliances, automotive, furniture, footwear, paints, coatings, pharmaceuticals and food & fragrances.
Manali Petrochemicals Financials
Talking about its financials, the company has fared well both on revenues and profitability which in FY21 was almost 3 times at Rs. 267.84 crore in 3 years. Also the stock has a fairly low debt with debt to equity ratio is less than 1. Furthermore, if we look at the company's recent quarterly results, it fared well with revenues increasing YoY by 22% and profit after tax also rose to Rs. 109 crore. Further sales at the company has also been on the rise, though on a sequential basis the firm has lagged by a margin.
Conclusion: The petrochemicals industry as per reports is expected to grow by over 30% between 2017-2025 period. Further being the raw material supplier across industries, the company's prospects look good down the line.
The information on the stock is given just for informational use and is not a recommendation to buy in the scrip.