Multibagger specialty chemicals stock in focus today: Despite the Indian stock market moving back and forth in recent weeks amid a lack of fresh triggers, Camlin Fine Sciences has been making significant strides on Dalal Street as demand for the stock has skyrocketed, resulting in a massive surge in its share value in a very short span of time.
From its April low of ₹128 apiece, the stock has soared nearly 145% to the current level of ₹312. The rally also pushed the stock to a fresh all-time high of ₹324 during Monday’s trading session and also led it to gain 200% in the last 3 years and 600% over the last 5-years.
Although the stock had begun recovering from recent lows, the sharp acceleration came after the release of its March quarter results on May 26, which drove a 62% gain in just 17 trading sessions. The company posted a positive net profit for the March quarter, its first after six consecutive quarters of losses, highlighting a resilient performance amid turbulent conditions.
According to domestic brokerage Axis Securities, the company has shut down its Diphenol CFS Europe and CFSWL China plants, which is expected to significantly reduce profitability drag from these operations.
During the quarter, the Blends and Aroma businesses continued to be key growth drivers. The Blends segment maintained its market leadership, with revenue rising to ₹878 crore in FY25, an 18% YoY increase from ₹747 crore. Management expects this momentum to continue, projecting a CAGR of 20% over the next 2–3 years.
The Aroma Ingredients segment also maintained its growth trajectory, generating ₹176 crore in FY25 revenue, driven by a favorable price trend in vanillin. The brokerage believes that a further ramp-up is anticipated in upcoming quarters, driven by the imposition of anti-dumping duties in the U.S. and the European Union, which are expected to further boost volumes and realizations from these regions over the next 3–4 quarters.
Camlin plans to scale up its vanillin capacity utilization from the current 45–50% to full capacity over the next two years, which would result in a lower cost per unit. The combination of a strong Blends business and rising vanillin prices is expected to enhance profitability going forward.
InCred adds stock to conviction list, projects 37% upside
Domestic brokerage firm InCred Equities has added the stock to its conviction list, assigning an ‘Add’ rating with a target price of ₹428 per share, implying a 37% upside from its previous closing price. The brokerage stated that the stabilization of the vanillin plant and the imposition of anti-dumping duties (ADD) on vanillin in the U.S. are expected to significantly transform the company’s profit outlook.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
