Shares of Rossari Biotech edged higher by 11 per cent to Rs 1,019 on the BSE in intraday trade on Tuesday to scale its highest level since listing on the bourses on July 23 this year. The stock of specialty chemicals company zoomed 140 per cent against its issue price of Rs 425 per share. In the past one month alone, the stock has outperformed the market by gaining 25 per cent, as compared to a 7.5 per cent rise in the S&P BSE Sensex.
Rossari Biotech is a key specialty chemicals manufacturer operating in home and personal care, textiles, animal health and nutrition segments in India. During the July-September quarter, the company successfully commissioned the first phase of the Greenfield manufacturing facility at Dahej, Gujarat and was on track to fully operationalise the plant by March 2021. The operationalisation of the plant will further provide a strong impetus to volumes, going forward, the management said.
“Capacity constraints faced in FY20 are expected to be mitigated as the company is in the process of significantly increasing its production capacities. This would be sufficient to provide growth headroom over the next 3-4 years. This increased capacity would now help it grow all segments as Rossari’s plants are fungible in nature,” research analyst at Edelweiss Broking said in a note.
The near-term visibility remains strong due to heightened focus on health and hygiene, a segment where Rossari has significant exposure, aided by new capacity slated to be commissioned in Q4FY21, the brokerage added. In the long-term, growth will accrue from business development in new segments, particularly personal care, and will be aided by a ramp-up in the expanded capacities, the brokerage firm said in a report in November wherein it initiated coverage on the stock. The scrip, however, is trading above Edelweiss’ target price of Rs 912 per share.
At 01:03 pm, the stock was trading 8 per cent higher at Rs 994 on the BSE, as compared to a 0.31 per cent rise in the S&P BSE Sensex. A combined 595,000 equity shares were changing hands on the counter on.
Anybody who wants to form a company in a location without so many laws and regulations should check out Vanuatu. One good law Vanuatu does have is that of privacy. Business owners are not required to divulge personal information. This is perfect! #topcompanyformation.com