Multibagger small-cap stock Sigachi Industries share price jumps 50% in three months. Should you buy or sell?

Multibagger smallcap stock: Shares of Sigachi Industries have experienced a strong upward trend over the past three months, providing substantial returns to investors. This multibagger small-cap stock has increased by nearly 50% in just three months and over 33% in the last month alone.

Sigachi Industries, which specialises in the production of Micro Crystalline Cellulose Powder (MCCP), has seen its stock price soar more than 126% over the last two years, delivering multibagger gains. 

The company's Q4 results have further boosted its gains. According to the exchange filing in early June, the total operating income for Q4 increased by 23.15% on a year-on-year basis, totalling ₹128 crore. EBITDA experienced substantial growth, rising by 74.84% year-on-year to reach ₹28.5 crores, which corresponds to an EBITDA margin of 22.31%.

Net profit rose by 7.28% compared to the previous year, amounting to ₹16.2 crores and resulting in a PAT margin of 12.63%. Revenue from the MCC segment saw a steady increase, growing by 55.08% year-on-year to ₹121.32 crores. The operations and maintenance segment added ₹10.76 crores, marking an increase of 17.9% compared to the same quarter last year.

In its latest earnings call for Q4FY25, the company reported strong demand in both domestic and international markets, driven by a focus on quality manufacturing and a customer-oriented strategy.

While the global MCC market experiences a 5-year CAGR of 6.5%, Sigachi has achieved a remarkable 5-year CAGR of 26.47%, highlighting their unique capabilities and effective execution. In their main MCC sector, revenue for FY '25 increased by 23.89%, with volume rising by 29.57%.

The board of directors of the company recommended a final dividend of Re 0.10 per share.

Sigachi Industries share price today

Sigachi Industries share price today rose nearly 3%. The stock opened at ₹55.88 apiece on the BSE. Thereafter, Sigachi Industries share price touched an intraday high of ₹57.19 per share and an intraday low of ₹55.70 apiece.

Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, said that Sigachi Industries' share price has witnessed a remarkable upward trajectory since the beginning of June, registering an impressive rally of over 30% from its recent low of ₹42. This upmove has been accompanied by robust trading volumes, lending strong credibility to the bullish sentiment, he said. 

“Notably, the stock has successfully closed above the December swing high, which confirms a saucer pattern breakout on the daily chart — a classic bullish continuation setup that suggests a gradual accumulation phase followed by a breakout. Further strengthening the bullish case, the Weekly RSI has crossed above the 60 mark, a level typically associated with a positive shift in medium-term momentum, reinforcing the likelihood of continued upside,” Bhosale added.

From a technical standpoint, the confluence of price structure, volume action, and momentum indicators points toward a potential extension of this rally, with the stock well-positioned to test the next resistance zone around ₹68– ₹70 in the near term, the Angel One analyst said.

On the downside, ₹52 now acts as a strong support level, being the breakout zone and a potential demand area on pullbacks, he opined.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.