Hidden gem! This multibagger smallcap inventory turns Rs 10,000 to Rs 8 lakh in simply 10 years

Shares of Refex Industries have provided bumper returns to traders within the final 10-year interval, surging as a lot as 8,500% over the last decade.

If an investor had put Rs 10,000 within the inventory 10 years in the past and stayed affected person, the funding would have turned to Rs 8.5 lakh, in response to an evaluation by ET Markets.

Within the final five-year interval, the shares have jumped practically 1195% and about 611% previously three years.

Refex Industries, a smallcap firm, is a specialist producer and re-filler of refrigerant gases, notably, environmentally acceptable gases which are replacements for Chloro-fluoro-carbons (CFCs). These are used primarily as refrigerants, foam-blowing brokers and aerosol propellants.

It has an EPS of 56.22 on a trailing 12-month (TTM) foundation and the inventory is at the moment buying and selling at a PB of 4.22.

In line with the most recent shareholding sample out there with the exchanges, promoters personal a majority of the stake at 53.3%, whereas the remainder of 46.6% lies with public shareholders.

Among the many public shareholders, mutual funds and international traders haven’t any vital stake, whereas retail traders personal a big holding of 28%.For the latest September quarter, Refex Industries’ internet revenue practically halved to Rs 21.4 crore from Rs 42.7 crore within the year-ago interval. Income from operations in the identical interval fell 52% year-on-year to Rs 357 crore.

Technical outlook – What ought to merchants do?
Analysts stated the inventory is displaying weak spot and suggested traders to keep away from it at present ranges. Technically, the day by day chart reveals a decrease high and decrease backside formation, an indication of weak spot — even the momentum indicator. MACD has additionally given a damaging crossover.

“At current, the inventory is buying and selling properly under the 50-day SMA. Combining the above parameters, it’s evident that momentum on the draw back could proceed. Therefore, one can promote the inventory at a CMP of Rs 593 with a cease lack of Rs 645 for a goal Rs 500–474 ranges in a few weeks,” stated Mileen Vasudeo, Sr Technical Analyst, Arihant Capital.

(Disclaimer: Suggestions, recommendations, views and opinions given by the consultants are their very own. These don’t symbolize the views of Financial Occasions)

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