SIP Stock: Anil Singhvi recommends Tata Steel BSL shares, pegs target at Rs 150, explains why it is a turnaround story
In the SIP Stock show with Zee Business Managing Editor Anil Singhvi on Tuesday, Tata Steel BSL emerged as a top pick.
In the SIP Stock show with Zee Business Managing Editor Anil Singhvi on Tuesday, Tata Steel BSL emerged as a top pick. Tata Steel BSL was identified as a potential 'MULTIBAGGER' stock. Research Analyst Ashish Chaturvedi said that Tata acquired this company from IBC in 2018 and now it is a complete Tata subsidiary.
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"Tata Steel BSL has its plants in Uttar Pradesh, Odisha, Maharashtra and Tamil Nadu, which gives it a strategic advantage of having its plants at all locations—East, West, North and South. They use this advantage in both supply and sale. It has shown a good turnaround since it has been acquired by Tata in 2108. It has been reflecting this turnaround in its financials too. In the Q 4 result, it booked a profit of a whopping 318 times, while margins increased from 18 per cent to 35 per cent. Also, debt came down from Rs 16,738 crore to Rs 10,686 crore in FY 21," said Chaturvedi.
MULTIBAGGER बनने की तैयारी में TATA Steel BSL
बाजार खुलने से पहले जानें स्टॉक जो है अनिल सिंघवी को पसंद
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He said it also has good promoters' holdings of 72.65 per cent, while DIIs also hold 6.44 per cent stake in it.
Talking about this company, Zee Business Managing Editor said it is a very good company backed by the 'strongest' management. "Since acquisition of BSL by Tata group, the company is under a management, which is not only one of the best in the sector but even otherwise in the overall market too. Besides good management, the company makes value-added steel products which have very high margins. Also, the most important thing is the valuation, Tata BSL is trading at a very attractive valuation, " Said the Market Guru.
He said there is also very high probability of revaluation of this company and one should buy this counter for a target of Rs 150.
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