#ZeeMaalamaalWeekly: This auto ancillary stock will give bumper returns! Know why Anil Singhvi likes it
Zee Business’ popular programme ‘Malamaal Weekly’ is here and it starts with a bang! From today investors will be provided various tips regarding top shares that are likely to give them bumper returns
Zee Business’ popular programme ‘Malamaal Weekly’ is here and it starts with a bang! From today investors will be provided various tips regarding top shares that are likely to give them bumper returns. Yes, these shares have the potential to make you rich. Just check out this Zee Business Research Analyst Ashish Chaturvedi’s report. (#ZBizBazaar #ZeeMaalamaalWeekly)
The stock that Chaturvedi recommends is Igarashi Motors which is an MNC in the auto ancillary space. The Japanese company manufactures DC motors and has a 21 per cent global market share. The company draws 43 per cent of its income from US, 26 per cent from Europe and 31 per cent from Asia.
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ऑटो एंसिलरी सेक्टर के इस MNC शेयर में करें निवेश, मिलेगा तगड़ा रिटर्न... जानिए अनिल सिंघवी को क्यों पसंद है ये कंपनी?#ZBizBazaar #ZeeMaalamaalWeekly @AnilSinghvi_ @AshishZBiz pic.twitter.com/amowKuFbGg
— Zee Business (@ZeeBusiness) June 18, 2020
Zee Business Managing Editor Anil Singhvi praised the business model of the company saying that the power plug motor systems manufactured by the company are being used in both high and low cost vehicles.
The Market Guru however, advises investors not to be in a hurry and remain cautious while they decide to buy the stock. The investors should note the stock and do their research before investing, he added.
Chaturvedi explains why the stock will likely have a bumper run on the bourses. The major chunk of the company’s income comes from replacement section and the good thing about this segment is that whether the vehicles are selling or not, the parts will be in demand because of wear and tear.
The auto sector will likely see a big disruption in the form of electric vehicles - a segment which is already gaining ground. The requirement for motors in electric vehicles is likely to rise further.
The fundamentals of this company are strong with a Japanese promoter at the helm. The promoter bought 21.5 per cent shares at Rs 270 a piece from the previous promoter. The balance sheet of this company is getting stronger and it has reduced its debts significantly, Chaturvedi said. From Rs 140 cr in FY18, the debts have been reduced to Rs 88 cr in FY 20.
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The valuations of this stock are also attractive, he said adding that the return on equity at 14 per cent is quite good. The company pays 27 per cent of dividend payout ratio, he said.
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