Invest in this stock with strong fundamentals, attractive valuations; Anil Singhvi gives 4 reasons why he likes this stock
Stocks to buy today: Which is the stock every investor should have in his portfolio? Zee Business Managing Editor Anil Singhvi recommends SML Isuzu, which manufactures high end luxury buses and mini buses. This stock is available at attractive valuations and is currently trading at its lowest price in the last 10 years
Stocks to buy today: Which is the stock every investor should have in his portfolio? Zee Business Managing Editor Anil Singhvi recommends SML Isuzu, which manufactures high end luxury buses and mini buses. This stock is available at attractive valuations and is currently trading at its lowest price in the last 10 years. This is a cycle and investors should buy this stock when it is trading at the lowest point of the cycle. The stock is currently trading around Rs 435 (#ZeeMaalamaalWeekly).
The company is expected to see a strong growth, going forward. This is a monopoly business for the company and the way airports are coming up or development of tourist destinations are happening, there is only one way for it to go.
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Isuzu and Sumitomo are two big promoters in the company.
The valuations are currently down as the company reported weak quarterly results. Investors should not see the EPS but see Cash EPS. The cash EPS is still around Rs 29-30, though the EPS is nearly at zero because of bad results. The investors can expect an EPS of Rs 11-12 in the financial year 2021-22.
The company had earlier unsuccessfully tried to get itself delisted at around Rs 400. The promoters had tried to get the company delisted at the time when it was not doing too well. They may try to get it delisted even now when the stock is at the lower end of the cycle. If that happens, the stock will not be valued at less than Rs 550-Rs 600.
The Market Guru recommends a Buy on this stock with a long term view. It is an investment grade stock, he said.
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Market Expert Kunal Saraogi said that there is nothing to lose in the stock. There is a strong support zone in this stock at Rs 350 and it is unlikely that this will be violated. The stock has seen a significant downward correction so there are no downward risks in this stock.
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