Two AIM speciality chemicals stocks turned multibagger amid prevailing bear market: BYOT and SYM

Within the chemical industry, speciality chemicals command a premium position with regards to generic chemicals. They are usually considered to be the building block for many sectors like Pharmaceuticals, Personal care, Home Care, Agro Chemicals, Paints, Automobile parts and many others.

Speciality chemicals often help businesses to increase the effectiveness of their products and offerings. Also, speciality chemicals are not produced in bulk like other chemicals because of very limited uses of these chemicals to influence the effect of their customer products and largely developed based on job work.

As on 22 April 2020, out of 15 speciality chemical stocks listed and traded on the London bourse, 12 stocks have significantly outperformed the return on their benchmark indices in last four weeks. Despite the fact that three stocks underperformed their benchmark indices, the average relative outperformance of stocks belonging to speciality chemical space stood at ~ 23% during the same time. Shares of Hardide PLC and Haydale Graphene Industries PLC are the outliers in the speciality chemicals league and outperformed their benchmark index by 67% and 51%, respectively in the said period.

Apart from these two outliers, there are stocks in this space which have delivered a multibagger return on a YTD basis.

Byotrol PLC (AIM: BYOT)

Record high order book amid COVID-19 outbreak has sent BYOT shares skyrocketing on LSE

Alternative Investment Market- listed BYOT shares have handed a multibagger return to its shareholders on a YTD basis, whereas the broader market has tumbled in the two-digit figure at the same time.

During the period under consideration, its shares have surged from GBX 1.68 (on December 31st, 2019) to GBX 5.7 (on April 22nd, 2020) and handed a stupendous return of 242% on a YTD basis and tuned out be a multibagger in the given period whereas the benchmark FTSE AIM AllShare index has plummeted by ~ 20% in the same time. Also, during the period under review, its shares have tested a high of GBX 6.975 on April 07th, 2020 and at the April 22nd, closing its shares traded approximately 18% off those high.

YTD Price Performance Chart (BYOT & FTSE AIM AllShare). Source: Thomson Reuters

Byotrol PLC is £25.20m market-cap speciality chemical company listed on the AIM segment of the London Stock Exchange. The Company is engaged in manufacturing, development, patenting, licensing and sale of anti-microbial products and technologies for business and consumer use. The Company manufactures products based on anti-microbial technology in the United Kingdom. Its segments include Professional (including food service, food manufacturing, industrial and health), Consumer and Pet.

Trading Update - Substantial increase in demand for its offerings amid COVID-19 outbreak in Europe

In the recent trading update, the Company said that it had witnessed a demand glut for the full range of its infection prevention and control technologies over the last seven weeks to March 23^rd 2020, post the broader recognition of the COVID-19 outbreak in Europe. The group has a decent pipeline of orders which is valued at £1.7 million and needs to be delivered by the end of June, with many more orders still being processed. Historically the Company's order book at this time of year has been around £0.35m.

For the financial year ended on March 31st, 2020, the Company stated that results would be far ahead of the guidance given at the time of our interim results, where we confirmed our expectations of positive EBITDA for the full year. However, it also stated that the exact outcome would depend on the extent to which BYOT can complete orders before the cut-off on March 31st.

Symphony Environmental Technologies PLC (AIM: SYM)

• Strong financial performance during 1QFY20 fanning its shares higher on LSE.

Alternative Investment Market-listed SYM shares have leapt up by 115% on a YTD basis and turned out a multibagger stock amid this sale season. From a price of GBX 6.75 (on December 31st, 2019) SYM shares surged to GBX 14.5 (on April 22nd, 2020). During the same period, its shares have tested a high of GBX 23.5 on March 03rd, 2020 and on April 22 closing, its shares traded approximately 38% off that high.

YTD Price Performance Chart (SYM & FTSE AIM AllShare). Source: Thomson Reuters

Symphony Environmental Technologies PLC is a United Kingdom-headquartered speciality chemical company with an outstanding market capitalisation of £24.65m. The Company is engaged in controlled-life plastic and sells both pro-degradant additives and finished plastic products. The Company's business activities include the development and supply of environmental plastic products to a global market and the development of waste to value projects. It also supplies other flexible polythene and related products. Its plastic business vertical generates revenue from the sale of plastic additives, masterbatches and finished product.

Trading Update- Revenues shot-up by 56% on a YoY basis.

As on April 06^th 2020, the Company reported its trading update for the first quarter ended on March 31st, 2020. During the period under review, the Company recorded a revenue upsurge of 56% to £2.4m against £1.6m revenue reported in the same period of the corresponding previous financial year.

Further, the Company secured US Food & Drug Administration's approval for its anti-bacterial bread-packaging and several customer trials have already begun, and others are at the planning stage. However, current challenging conditions owing to coronavirus outbreak could delay trail timeline.

Moreover, the group started testing of its d2p anti-microbial technology independently against members of the Coronavirus group. The group believes to get the outcome before the end of June. If the results are favourable, the group is planning to sell d2p treated products to a wider market. Also, the group is planning to test it against COVID-19 subject to the availability of independent laboratory capacity.

Also, the group management remains confident that the Company has a solid balance sheet, well placed in the current environment to cater its target audience.