Kotyak Industries: turned out to be a huge multibagger
Kotyark Industries launched an IPO in October last year at Rs 51 and has since rallied to Rs 292. The company is a licensed manufacturer of biodiesel and has received a Letter of Intent from the Biofuel Authority, Rural Development, Panchayat Raj Department, and Government of Rajasthan. The company has also received clearance from the government of Rajasthan for the establishment of a mobile outlet for the sale of biodiesel and has entered into a mobile outlet agreement with various parties for this purpose. The company has a biodiesel manufacturing capacity of 100,000 KL per month from Multi Feedstock in Rajasthan, India.
What is biodiesel?
Biodiesel is a liquid fuel, technically known as a monoalkyl ester, made from oils and alcohols. Biodiesel is a renewable fuel that can be produced in any climate using already developed agricultural practices. Biodiesel is made from renewable resources like vegetable oils or other types of biomass. B100 is 100% biodiesel. Biodiesel is widely available both in its pure form (B100) and in blends with petroleum diesel. Unlike conventional diesel, biodiesel is non-toxic, biodegradable and safer to ship. Spills do not require emergency response cleanup activities.
Should we buy the shares of Kotyark Industries?
The company is listed on the SME segment of the NSE. There are no quarterly numbers available for March, but if you see the numbers for the period ending December 31, 2021, they’re pretty decent. Basic EPS stood at around Rs 5.90, on a very small share capital. We have to extrapolate to arrive at an EPS of around Rs 24 for the company. Kotyark Industries has a very small share capital and the promoters own 72%. It’s hard for us to say whether to buy the stock, as more data would be needed to analyze the stock, including annual reports and March quarter numbers. Nevertheless, what we think is that investors who want to take the risk could buy small amounts like a hundred shares. However, as such, we have no option to buy, sell or hold shares.
It is a very small cap stock and prices can be volatile. Please understand the risk before investing. Neither Greynium Information Technologies nor the author would be liable for any loss based on a decision to read the above article. Every effort has been made to provide accurate information and readers should understand the inherent risks before investing in the markets.