MULTIBAGGER: Smallcap Agrochemicals Stock Turns Rs 10K into Rs 2.5 Lakh in 10 Years – Should You Invest?

Astec Lifesciences, a company making agrochemicals and pharmaceutical intermediates, has seen a huge rise in its stock price over the past 10 years, increasing by 2,590%. This means that if someone had invested Rs 10,000 in the stock a decade ago, it would now be worth Rs 2.5 lakh, according to ET Markets.

Recent Performance

Recently, the stock’s rapid rise has slowed. In the past six months, it has gone up by 33%, and it has increased about 35% since the beginning of the year.

Astec LifeSciences produces various agrochemical active ingredients and pharmaceutical intermediates, including fungicides, insecticides, herbicides, and other chemicals for global customers. The company’s products include triazole fungicides, heterocyclic herbicides, and many other chemical intermediates.

Shareholding Pattern

The company’s shareholding pattern shows that promoters own 66.75% of the company, while public shareholders own the remaining 33.25%. Among the public shareholders, mutual funds hold just over 7%, and foreign investors do not have a significant stake.

In the March 2024 quarter, Astec reported a total income of Rs 156 crore, up from Rs 129 crore in the same quarter the previous year. The company’s consolidated EBITDA also rose to Rs 14.8 crore from Rs 8 crore in the same period last year.

What should investors do now?

Analysts have noticed a positive technical pattern in Astec’s stock. On the weekly chart, there is a breakout with good volumes, and the RSI (Relative Strength Index) is looking strong. The stock is also outperforming the benchmark indices.

Mileen Vasudeo, a Senior Technical Analyst at Arihant Capital, suggests holding the stock at its current price with a stop loss of Rs 1302. On the upside, the stock could reach Rs 1690-1800 levels in the next few months.