In today’s episode of ‘Jain Sahab Ke Gems’ show, market analyst Sandeep Jain, while speaking to Zee Business Managing Editor Anil Singhvi,  revealed a great strategic counter for investors - Shivalik Rasayan. Shivalik Rasayan is the largest producer of international quality Dimethoate Technical and Malathion Technical including manufacturer of organophosphorus based insecticides and chemicals. Shivalik Rasayan was established in 1981 with a mission to produce effective and environmental friendly chemicals for protection of plants. Recently, with the acquisition of Medicamen Biotech. Shivalik Rasayan has ventured into another chemistry segment of pharmaceuticals. The market cap of Shivalik Rasayan is approximately Rs 650 cr and the fundamentals of the company are extremely strong.

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Shivalik Rasayan management team includes Rahul Bishnoi who is a first-generation entrepreneur. He completed the Chartered Accountant programme in the year 1986. Vimal Kumar Shrawat is the Managing Director of the company, he holds a Doctorate Degree in Organic Chemistry from University of Delhi.  He previously held the position of Chief Operating Officer (COO) in Shilpa Medicare. The promoter background is extremely strong and so are the fundamentals of the company.

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Shivalik Rasayan sales growth of the previous 5 years CAGR is 35%, profit for past 5 years is 65% CAGR. In Q2 FY21, the company witnessed its highest topline ever. Shivalik Rasayan net profit has improved considerably and operating margins are improving consistently which indicate the company is doing extremely well at its efficiency levels. Shivalik Rasayan topline is also strong, which is the key reason for Sandeep Jain to pick the stock. 

Shivalik Rasayan target price on the stock is Rs 560 – Rs 580.