This is the story of the chemical stock Bharat Rasayan. This company manufactures many types of chemicals. The company’s major products include Fatty Acid Anhydrides, Grignard Reagents, Pharma Intermediates, Esters and Solvents. This company is one of the largest manufacturers of chemicals used in cosmetics. The company’s focus is on personal care preservatives like skin care, hair care and anti-bacterial.
This company has performed brilliantly on the stock market. The market capitalization of Bharat Rasayan is currently just around Rs 3,800 crore and accordingly it is counted in the small-cap category ie the category of small companies, but the price of each of its shares is very high. Right now you will have to spend about 9 thousand rupees to buy one share of it. On Friday, July 28, the stock of Bharat Rasayan closed at Rs 8,929.65, up 0.31 per cent.
Recent poor performance
According to the last 5 days, this share is down about 4 percent. If we look at it according to one month, then the price has fallen by about 7 percent. According to 6 months, the stock is in loss of about 3 percent, whereas in the last one year it has fallen more than 25 percent. This means that the recent months have not been good for Bharat Rasayan. This year has also proved to be bad for this stock and its price is at a loss of about 10 percent since January.
6600 percent increase in 10 years
According to the short term, this stock seems very minor or appears to be a loss deal, but as soon as we look at it in terms of long term, then its performance starts to look surprising. In the last 3 years, this stock has gone up by about 53 percent, so in the last 5 years, its price has increased by more than 100 percent. On the other hand, when compared with 10 years back, its speed becomes 6,600 percent.
Such a bumper return in the long term
In July 2013, its share price was around Rs 130. Comparing that time, it can be said that if an investor had invested only Rs 1.5 thousand in this share 10 years back, today the value of his investment would have been more than Rs 1 lakh. On the other hand, investors who invested only Rs 10,000 10 years ago would have more than Rs 7 lakh today.
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