Small-cap Pick With Anil Singhvi: Varinder Bansal suggests this share to buy post-SEBI decision on multi-cap funds
Stock Pick With Anil Singhvi: Market regulator Securities and Exchange Board of India (SEBI) has made it mandatory for the multi-cap mutual fund managers to raise their small-cap and mid-cap share investment up to 25 per cent by January 2021.
Stock Pick With Anil Singhvi: Market regulator Securities and Exchange Board of India (SEBI) has made it mandatory for the multi-cap mutual fund managers to raise their small-cap and mid-cap share investment up to 25 per cent by January 2021. Zee Business Managing Editor Anil Singhvi said this means that those small and mid-cap stocks which have attractive balance sheet and valuations can get huge benefit of this SEBI decision. In this regard, the Market Guru talked to Varinder Bansal, Managing Partner at Pantomath Asset Management and asked him to name some small-cap shares that can give big upside movement in the coming trade sessions and the expert replied with Voltamp Transformers, calling it a share to buy.
Speaking on the Voltamp Transformers fundamentals Varinder Bansal told Anil Singhvi, "Voltamp Transformers is a zero-debt company with market cap of Rs 1,000 crore. Its ROC (Return on Capital) is at 15 per cent and the company has never gone for its equity dilution, means the company never had to face any kind of financial crisis where it had to dilute its equity for fund raise."
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Bansal went on to add that Voltamp Transformers has an investment of Rs 535 crore in mutual funds and other options that means the company has an investment of more than 50 per cent of its market capital that reflects about the sound financials of the company. Net worth of the company is Rs 750 crore and the Voltamp shares are available at its lowest cycle that means risk factor in this small-cap stock is at lowest level.
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SEBI के फैसले के बाद अब कौन से स्मॉलकैप शेयर एक्शन दिखाने को हैं तैयार?
— Zee Business (@ZeeBusiness) September 16, 2020
The Managing Partner at Pantomath Asset Management told Anil Singhvi that Voltamp Transformers has a diversified clientele of more than 1000 clients. He advised stock market investors to buy this small-cap share for huge returns in the long-term perspective.
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