Smallcap stock jumps 5%, up over 100% in 9 months; trades at 17-month high

Shares of Camlin Fine Sciences (CFSL) hit a 17-month high at Rs 169.70, as they rallied 5 per cent on the BSE in Thursday's intra-day trade on heavy volumes.

Shares of Camlin Fine Sciences (CFSL) hit a 17-month high of Rs 169.70, as they rallied 5 per cent on the BSE in  Thursday’s intra-day trade amid heavy volumes. The stock of smallcap specialty chemicals company was trading at its highest level since October 2023. In the past two trading days, the stock has surged 14 per cent. In the past one year, it has more-than-doubled or zoomed 112 per cent from a level of Rs 80 on June 4, 2024. 

 

CFSL is inter-alia engaged in the business of diverse high-quality innovative antioxidants and shelf-life extensions, aroma ingredients, performance chemical products and related solutions for food, animal nutrition, pet food, pharmaceutical and petrochemical industries globally.

 

 

The company’s blended business has demonstrated strong growth momentum over the past few quarters, and the management expects it to sustain an annual growth rate of 15 per cent - 20 per cent going forward.

 

CFSL delivered respectable revenue growth along with profitability improvements over the past two quarters. Following the impairment of its European and Chinese facilities, the company appears to be focusing on cost savings and sustainable revenue growth. Margins are expected to expand further, with an additional 400 - 500 bps improvement in EBITDA margins starting FY26, according to analysts at Axis Securities.

 

The company is also set to benefit from the implementation of anti-dumping measures in the US and improving Vanillin prices. While steady performance improvement is expected, the brokerage said it will closely monitor end-market developments and internal execution efficiency.

 

Meanwhile, the management highlighted that the Blends business maintained strong momentum and is expected to grow at a similar rate going forward. With rising Vanillin prices, the Aroma business is also set to ramp up. Vanillin prices have been trending higher since December 2024, driven by the Anti-Dumping Duty (ADD) in the US. Overall, the Blends business is projected to grow at 15 per cent - 20 per cent over the next two years, while the Aroma business is anticipated to steadily increase capacity utilisation, targeting 75 per cent in FY26. EBITDA margins are expected to see meaningful improvement over the next few quarters, analysts said.

 

Following the Vitafor acquisition, CFSL has applied for registrations in multiple countries, with some approvals already in place. The company is rolling out product launches in Mexico, Colombia, Peru, and India and anticipates substantial growth in the Vitafor business for FY26.