In today’s edition of ‘Jain Sahab Ke Gems’, market analyst Sandeep Jain picked a company which is into the business of manufacturing premium quality basic food colour, food ingredients and D and C food colour. The company is Vidhi Specialty Food Ingredients. This stock has been recommended previously by Jain on the channel. He explained to Zee Business Managing Editor Anil Singhvi why he picked it this time too and what will trigger a bullish move in this stock.  

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

See Zee Business Live TV Streaming Below:

Top Stocks To Buy: Vidhi Speciality Food Ingredients 

Jain recommended Vidhi Speciality, a company that was recommended by him on a previous occasion too. He said this was an excellent company and it has been consistently performing well, giving high returns to the investors. He said that he was the first analyst on Zee Business who spoke about this particular counter. It was recommended at levels around Rs 60, 2-3 years ago, he said. 

Watch Zee Business Tweet Video Below:

The profits have been growing at a CAGR of 32 per cent. The sales have also been on the rise. The valuations are quite reasonable at a PE multiple of 18, Jain said. The return on capital employed is 31 per cent and the return on equity is around 29 per cent and the company is almost zero-debt. The September and June quarter results were quite strong. The promoters have around 65 per cent stake.  

This stock is currently trading around Rs 123. This stock should be bought for a target price between Rs 140 and Rs 150.