After Walchandnagar, here is another multibagger. Keep a tab on Orchid Chemicals. The stock has been going great guns and it going to surprise the markets. The company is driven by various revenue triggers and future growth will be in the range of 30-40% in the next three years. The company has various molecules in pre-clinical trials stage. I will keep posting more updates on this as I get triggers. For now, keep a watch!
January 20, 2008...12:15 am
Orchid Chemicals – Potential Multibagger
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1 Comment
April 19, 2008 at 10:31 am
Hi,
Orchid chemicals has had quite a ride over the last 3 months. From a high of 320 in Jan to a low of 120 in mid-March. Now again at 270 rupees a share.
Although you timing was a bit ill-timed (no one could have had the foresight of understanding the liquidity situation of the major shareholder of the firm – Bear Stearns), what do you think about the business per se?
I checked the EV/EBIT of Orchid, it comes to about 10.50 (which is OK; Alembic is at 8 and DRL is at 13.8). From an asset point of view, Orchid doesnt have too much weight but has improved price-earning over time.
Warm Regards
Shankar
http://scrip-tures.blogspot.com