Excel Industries is a stock to buy I On Anil Singhvi show, here is what Sandeep Jain recommends

Sandeep Jain today picked Excel Industries as a stock to buy with a long-term perspective. This stock is currently trading around Rs 880. Analyst Sandeep Jain recommended his top pick in today's edition of ‘Jain Sahab Ke Gems’ show with Zee Business Managing Editor Anil Singhvi. Know why Excel Industries stock has a potential to earn high returns for investors.

Today’s pick is Excel Industries, which is one of the oldest listed companies of India. Excel Industries is India’s first domestic chemical manufacturer. The company is a pioneer in indigenous chemical technology and sustainable waste management. Innovation has always been a key driving force at Excel Industries. Since their inception in 1941, the company has achieved hundreds of chemical process breakthroughs, steadily contributing to the enhancement of technology knowhow in the nation. Excel Industries is one of the India premier manufacturers of Specialty Polymer Additives and high quality Veterinary APIs.

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Excel Industries flagship chemicals division remains true to this ethos while diversifying our product portfolio to include a range of Agrochemical Intermediates, Pharmaceutical Intermediates, Polymer Input Materials and, Specialty and Performance Chemical.

Excel Industries stock had moved from levels of Rs 400 to Rs 2000 in 2017 - 2018. After that midcap stocks witnessed some correction and now the stock is available at an attractive valuation. Fundamentals of the company are extremely strong. The stock is trading at a P/E multiple of 19, dividend is nearly 100%, Return on Capital is close to 16 – 17. The company is almost debt free; they have negligible debt of Rs 11 cr. The CAGR profit of the past 3 years for the company is close to 67%, CAGR profit for 5 years is 18%-19% and CAGR profit for 7 years is 30%. Q2 FY21 results of the company have been extremely strong. Excel Industries promoters hold strong Goodwill within the investor's vicinity because of which many big DIIs and FIIs invested in the company. Investors should buy into this stock for targets of Rs 970 – Rs 1030.