Top stock picks today: GMDC share is Anil Singhvi recommendation for bumper returns; 3 reasons why investors should buy
Top stock picks today: Zee Business Managing Editor Anil Singhvi has been picking out good quality stocks, which are at the lower cycle of their valuations and have strong fundamentals.
Top stock picks today: Zee Business Managing Editor Anil Singhvi has been picking out good quality stocks, which are at the lower cycle of their valuations and have strong fundamentals. Most importantly, these stocks are not so costly. Hence, once a critical trigger comes, such stocks are poised to give higher returns to investors. With this aim, the Market Guru picked GMDC stock to buy for investors as the counter is below 50 per cent of its book value and it has strong promoter support as well.
Highlighting the attractive valuation of the GMDC shares, Anil Singhvi said, "GMDC share price has very attractive valuations. currently, its price is around Rs 44 per share while its book value is Rs 100. Hence, the GMDC counter is standing at the lower cycle of its valuation and this is what attracts a long-term investor."
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The Market Guru said that lower valuation is one of the three major reasons that one should buy GMDC shares.
On the second reason to buy GMDC stock, Singhvi said, "Second reason that attracts me to recommend this share to buy is strong promoter support. GMDC is 74 per cent owned by the Gujarat Government and the Gujarat government is in a mood to divest its shares in various companies and GMDC is one of them."
Singhvi said that once the divestment decision is taken, it will be a big trigger for a GMDC stock rally and hence those who have invested in this stock can expect higher percentage of returns in their investment.
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On the third reason for recommending GMDC stock to buy, Singhvi said, "Third reason for my attraction with GMDC shares is its monopolistic business in Gujarat. The GMDC company deals in lignite and it has a monopoly in lignite business in the state — both in terms of exploration and sales. Even if the lignite coming in from outside Gujarat, its marketing responsibility is with the GMDC. hence, its business is expected to remain steady that's why the company gave Rs 2 dividend to its share-holders even when the entire business sentiment has been hit badly due to the Covid-19 pandemic."
Singhvi said that company has strong fundamentals and technicals that makes it an ideal #ZeeMalamalWeekly share to buy.
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