In today’s edition of ‘Jain Sahab Ke Gems’, market analyst Sandeep Jain, while speaking to Zee Business Managing Editor Anil Singhvi, revealed a great strategic counter for investors. Today, he has recommended a stock that he said has potential to give high returns to the investors. The stock he picked today is Plastiblends India Limited and here is why.

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According to Sandeep Jain, Plastiblends India is a good company because it is India's largest manufacturer and exporter of Colour, Additive Master Batches and Thermoplastic Compounds for the Plastic Processing Industry.  Established in 1991, Plastiblends India has managed its growth very well.

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He further added that Plastiblends India is an award-winning company -- it won the highest recognition for exports “Largest Exporter of Master Batches”  for eight consecutive years since 2003-04 by the PLEX COUNCIL (Plastic Export Promotion Council, Government of India).

In today's episode, market analyst Sandeep Jain also stressed that: " Overall, it's a credible company and the good thing about Plastiblends India is that it has almost zeroed its debt in last one year. Managing debt was important during the Covid-19 pandemic but this company not just managed the debt but performed extremely well in December quarter."

"In December quarter results, Plastiblends India has performed well and showed PAT (Profit After Tax) of Rs 11 crore, which for me was good during the coronavirus crisis. Also, the company's dividend deals is around 1.5 percent. The dividend payout ratio has been good from Plastiblends India so far. In fact, promoters' holdings in the company are strong. FIIs and DIIS also holding at least 3-4 percent stakes in the company. If the company is showing 13-14 percent profit form last 7 years and the return on capital employed is 16 per cent, Plastiblends India can be the good choice," he said.

Jain also noted that Plastiblends India's balance sheet is in good state and it is growing very fast. According to him, investors should definitely buy this stock. On what should be the strategy that a stock market investor can maintain in regard to Plastiblends India shares Jain told Anil Singhvi, "Plastiblends India stock is currently trading around RS 260.25 and one can target this stock at Rs 290-300."