Daikaffil Chemicals Hits 5% Upper Circuit as Promoter Group Increases Stake
Mumbai, February 21, 2025 – Shares of Daikaffil Chemicals India Ltd, a microcap chemical company engaged in manufacturing organic chemicals and intermediates, surged to hit the 5% upper circuit on Friday. This rally was triggered after the company’s promoter group, SAMS Industries Private Limited, increased its stake in the firm.
Stock Performance: A Multi-Year Surge
Daikaffil Chemicals India Ltd has been an impressive performer in the stock market, delivering stellar returns over various time frames:
| Time Frame | Returns (%) |
|---|---|
| 1 Year | 63% |
| 3 Years | 597% |
| 5 Years | 672% |
On Friday, the stock hit ₹182.9 per share, leading to a total market capitalization of ₹109.74 crores. This upward movement comes on the back of strong investor confidence and increased promoter holdings.
Why Did the Stock Surge?
The key catalyst behind the stock’s upward movement was the increased stake by the promoter group:
- On February 18, 2025, SAMS Industries Private Limited purchased 8,316 equity shares from the open market.
- Following this, on February 19, 2025, SAMS further acquired 10,176 shares, bringing its total stake to 2.74% from an earlier 2.43%.
- Over the last quarter (Q3FY25), the total promoter holding increased from 49.43% to 51.25%, marking a key milestone for the company.
This increase in promoter holding signals confidence in the company’s growth prospects, which often acts as a bullish trigger for investors.
Financial Performance & Key Ratios
Despite the stock’s strong price movement, the company reported a net loss of ₹0.36 crores in Q3FY25, with total revenue of ₹3.5 crores. Here are some of the key financial metrics:
| Metric | Value |
|---|---|
| Market Cap | ₹110 Cr. |
| Current Price | ₹183 |
| 52-Week High/Low | ₹281 / 78 |
| Stock P/E | – |
| Book Value | ₹16.1 |
| Dividend Yield | 0.00% |
| ROCE | -12.2% |
| ROE | -12.2% |
| Debt-to-Equity | 0.00 |
| Price to Earnings | – |
| Pledged Shares | 0.00% |
| QoQ Profits | 37.9% |
| Quarterly Profit Variance | -28.6% |
| Industry PE | 23.1 |
| RSI (Relative Strength Index) | 43.4 |
| EPS (Earnings Per Share) | ₹ -3.65 |
| 200-Day Moving Average | ₹181 |
| Free Cash Flow (3 Years) | ₹ -3.04 Cr. |
| Free Cash Flow (Current Year) | ₹6.05 Cr. |
| Debt | ₹0.00 Cr. |
Industry Outlook: A Booming Chemical Sector
India is one of the leading players in the global chemical industry:
- 6th largest producer of chemicals worldwide.
- 3rd largest in Asia, contributing 7% to India’s GDP.
- The industry is currently valued at $220 billion and is expected to reach $300 billion by 2030 and $1 trillion by 2040.
With government support and rising demand for specialty chemicals, companies like Daikaffil Chemicals are well-positioned to benefit from this growth trajectory.
About Daikaffil Chemicals India Ltd
Daikaffil Chemicals India Ltd is engaged in manufacturing and trading of chemicals. The company is a major producer of Optical Brightening Agents (OBAs) used in industries like:
- Textiles
- Pulp & Paper
- Detergents & Soaps
Additionally, it manufactures Stilbene Derivatives, Pigment Red 170 intermediates, and other specialty chemicals. Given its niche presence, the company continues to expand its product portfolio to meet growing industry demands.
What Lies Ahead?
With the promoter group increasing its stake, the stock’s recent rally signals investor confidence. However, challenges such as profitability concerns remain. Investors should closely monitor upcoming earnings and industry trends before making decisions.
Given India’s booming chemical sector and Daikaffil’s strategic positioning, the company remains an interesting stock to watch in 2025.
Conclusion
The recent surge in Daikaffil Chemicals India Ltd’s stock price reflects strong promoter confidence. While financial performance has been mixed, industry tailwinds and business expansion strategies make it a compelling pick for long-term investors. With its strong multi-year returns, Daikaffil Chemicals is set to remain on investor radars as India’s chemical industry continues to thrive.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.