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IPO investors achieve 2.6 times the return on this chemical stock in 5 months. Should you buy?

Multi-excavator inventory: In 2021, many stocks doubled their shareholders’ money. However, to the surprise of market watchers, this list of Multibagger stocks in 2021 includes public issues that were quoted that year. Laxmi Organics is one such public issue. The shares of the specialty chemicals manufacturer were sold at the issue price of 129 tons 130 and was listed on both BSE and NSE on March 25, 2021. It was listed on the NSE at 155.50 per share, while listed on the BSE at 156.20 per share. For those investors who keep the counter to this day, the chemical share has around 2.6 times the return (current share price of 409 / list price close to 156) in just 5 months. According to stock market experts, the share should continue to deliver smart returns above the benchmark indices in the future. They advised investors to buy this chemical stock for the long term.

On the strong fundamentals that will fuel Laxmi Organics’ price rally; Avinash Gorakshkar, Head of Research at Profitmart Securities, said: “The company trades in Acetyl Intermediates (AI) and Specialty Intermediates (SI), where it operates on a margin of around 20 percent and has a market share of around 30 percent, also holding its Q1FY2021 -22 results when it was reported 102 crore quarterly profit, that’s just 25 crore lower from its FY21 profit of 127 million euros. That being said, the company’s order book will be at full capacity for the next year and a half, so profit is likely to stay in that area 100 crore per quarter level. “

Avinash Gorakshkar of Profitmart Securities added, “When Laxmi Organics went public, there was a lack of awareness of the company. But after the successful listing of Laxmi Organics’ shares, the people, the company and its finances began. I would advise investors to add this stock to their portfolios for the long term, say one and a half to two years. “

Revealing Key Values ​​Regarding Laxmi Organics’ shares; Sumeet Bagadia, Executive Director at Choice Broking, said, “Laxmi Organics stock looks strong on the chart and you can buy the meter and hold it for a long time 425 tons 440 stop loss at hold 380. After overcoming this hurdle of 440, it can go on 480 tons 500 in the next two months. “

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