Rossari Biotech hits all time high after Plutus Wealth acquires stake - Angel Broking

Mr. Keshav Lahoti, Associate Equity Analyst, Angel Broking Ltd

"Rossari Biotech is a specialty chemical Company catering to the FMCG, apparel, and poultry & animal feed industries. Company got listed on the exchange at ~58% over issue price on July 23, 2020. Recently, the stock is rallying on the news that Plutus Wealth Management LLP acquired 3 lakh shares of the Company at Rs.773.82 per share. Currently stock is trading twice the issue price i.e. doubling the wealth of investors in less than 2 months. Market is positive on the stock considering that it has a strong balance sheet, good return ratios, outlook of the business is positive, proven track record of robust financial performance and surge in demand of home and personal care segment (sanitizers, cleaning products) due to covid-19. Company is planning to more than double its capacity to 252,500 MTPA by F.Y.21 end from 120,000 MTPA as on F.Y.20. Stock performance will depend on how fast the company will be able to ramp up the production on the new capacity and also on the EBIDTA margins."

Source : Equity Bulls

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