GHCL surges 25% in 5 sessions; further upside seen in this small-cap chemical stock

Surging for the fifth straight session, GHCL shares gained up to 25 per cent in the last five days. The stock of this small-cap chemical company closed at a new high of Rs 529.7 per share. The stock was up 7 per cent on the BSE in the intraday trade on the back of heavy volumes. 

The counter has breached its earlier high of Rs 499.45 per share touched on March 11, 2022. While the analyst at Zee Business Himanshu Gupta sees the stock hitting Rs 550-560 per share price target in next couple of days, which translates into an upside of 6 per cent. 

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The overall chemical sector had been under focus with China locks down one of major producing cities. The stock has a sharp upward move since last few sessions and is from supportive category.  

As per weekly charts, the stock has shown breakout above Rs 480-490 per share levels, momentum of this stock his high and has potential of hitting estimated target quite soon. Risk reward attractive, it has given a weekly consolidation breakout, the market analyst told to Zee Business.  

The company’s board of directors on December 6, 2021, had approved a Scheme of Arrangement involving demerger of spinning business division of GHCL-to-GHCL Textiles, subject to receipt of applicable regulatory approvals. This new scheme may be completed by around September 2022. 

GHCL is a diversified company having presence in chemicals, textiles and consumer products segment. GHCL is one of the leading manufacturers of soda Ash, being its core business and a strategic growth pillar. 

The stock so far in 2022 has registered returns of over 40 per cent as compared to 4-5 per cent fall in the benchmark indices. The counter has been a multibagger as it surged over 122 per cent in the last one year as compared around 12 per cent rise in the benchmark indices.