Anil Singhvi picks Jubilant Industries as his 'SIP STOCK' today, know the reason WHY
Anil Singhvi said that the Jubilant Group has been in focus lately. He said that the new management is focusing on growth. The Market Guru added that this stock should be valued at Rs 350 and currently, it is available at a steep discount. The company can do EPS of 20-22 this year
Anil Singhvi said that the Jubilant Group has been in focus lately. He said that the new management is focusing on growth. The Market Guru added that this stock should be valued at Rs 350 and currently, it is available at a steep discount. The company can do EPS of 20-22 this year. Company is currently valued at Mcap/Sales of just 0.6, With ROE at 22.7% with Promoter holding as high as 74.96%. Promoters are holding the maximum stake that SEBI has allowed, indicating that the promoters are extremely confident of the growth in the company and they don’t want to dilute their stake.
Singhvi said that the balance sheet of the company is extremely strong too. Company has reduced debt considerably from Rs 262 cr as on 31 March 2018 to Rs 124 cr as on 30 Sep 2020. Also recently ratings of its material wholly owned subsidiary also got upgraded by India Ratings from IND BBB to IND BBB+.
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On his part, market expert Rakesh Bansal said that the stock can see a first target of Rs 264 – Rs 265 and technically the chart looks extremely strong.
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Ashish Chaturvedi, Research Analyst at Zee Business said that Jubilant Industries is the flagship company of Jubilant Bhartia Group, holding Leadership positions in various segments like In Agri Products amount Top 3 brands in India In Food Polymers/VP Latex No.1 in India and Globally No.3. The Company ’s diversified portfolio includes a wide range of Crop Nutrition, Crop Growth and Crop protection Agri products and Performance Polymers products comprising consumer products like adhesives, wood finishes; food polymers and latex such as Vinyl Pyridine, SBR and NBR latex.
Ashish said that the management of the company is highly experienced that includes Manu Ahuja, CEO & MD, who has held leadership positions in companies like Whirlpool & Akzo Nobel earlier. Also, directors like R.S. Sharma who held leadership positions in ONGC, associated with McKinsey & Company as senior advisor etc
Ashish said that Jubilant Industries in its announcement on 25 Feb 2021 revealed that it is evaluating the possibility of restructuring/Merger with Jubilant Agri & Consumer Products (Wholly owned subsidiary) to improve efficiency. There will be synergistic benefits for the company. The financials and operating profit of the company will see good growth and will improve drastically going forward. Debt to equity ratio of the company is extremely comfortable. The company has seen a turnaround in FY20. FY20 was the benchmark year for the company with all time high volumes being produced and sold
Ashish said that the valuations of the company are extremely attractive at this stage.
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