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

Shares of Refex Industries have offered bumper returns to investors in the last 10-year period, surging as much as 8,500% over the decade.

If an investor had put Rs 10,000 in the stock 10 years ago and stayed patient, the investment would have turned to Rs 8.5 lakh, according to an analysis by ET Markets.

In the last five-year period, the shares have jumped nearly 1195% and about 611% in the past three years.


Refex Industries, a smallcap company, is a specialist manufacturer and re-filler of refrigerant gases, particularly, environmentally acceptable gases that are replacements for Chloro-fluoro-carbons (CFCs). These are used primarily as refrigerants, foam-blowing agents and aerosol propellants.

It has an EPS of 56.22 on a trailing 12-month (TTM) basis and the stock is currently trading at a PB of 4.22.

According to the latest shareholding pattern available with the exchanges, promoters own a majority of the stake at 53.3%, while the rest of 46.6% lies with public shareholders.

Among the public shareholders, mutual funds and foreign investors have no significant stake, while retail investors own a large holding of 28%.

For the recent September quarter, Refex Industries' net profit nearly halved to Rs 21.4 crore from Rs 42.7 crore in the year-ago period. Revenue from operations in the same period fell 52% year-on-year to Rs 357 crore.

Technical outlook - What should traders do?
Analysts said the stock is showing weakness and advised investors to avoid it at current levels. Technically, the daily chart shows a lower top and lower bottom formation, a sign of weakness — even the momentum indicator. MACD has also given a negative crossover.

"At present, the stock is trading well below the 50-day SMA. Combining the above parameters, it is evident that momentum on the downside may continue. Hence, one can sell the stock at a CMP of Rs 593 with a stop loss of Rs 645 for a target Rs 500–474 levels in a couple of weeks," said Mileen Vasudeo, Sr Technical Analyst, Arihant Capital.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)