Stocks To Buy: In chat with Anil Singhvi, Sandeep Jain bets big on Rossell India; calls it a money-making share
Market analyst Sandeep Jain on 14 May picked a stock from the commodities sector. In a chat with Zee Business Managing Editor and Market Guru Anil Singhvi during the popular TV show ‘Jain Sahab ke Gems’, Jain recommended to buy the stocks of Rossell India that has been reporting robust profits in the past few quarters
Market analyst Sandeep Jain on 14 May picked a stock from the commodities sector. In a chat with Zee Business Managing Editor and Market Guru Anil Singhvi during the popular TV show ‘Jain Sahab ke Gems’, Jain recommended to buy the stocks of Rossell India that has been reporting robust profits in the past few quarters.
Jain sounded gung-ho and said that today it was a great day for the market! After putting his bet on Kothari Petrochemicals and Hester Bio, he picked Rossell India as his third gem of the day. Jain added that all the three stocks are performing extremely well throughout the day. “Today, we planned to bet on hattrick companies and Rossell India is the third gem.”
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Rossell India is one of the best performing companies. It has two divisions -- Tea and Aerospace & Defence (Engineering, Manufacturing and Services). The company is 27 years old in the tea business, with tea estates mostly in Assam, and has done many acquisitions till date. The quality of their tea estate is also much better, if compared with other tea estates in India, Jain added. And this is the reason their stocks are performing really good!
He further added that Rossell India is a diversified company with two other divisions - aerospace and defence. And in both these divisions, it is doing extremely well. The company’s fundamentals are really good, he added.
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The stocks are trading at a PE multiple of 11. For the past three years, the sales growth has been at 23-24 per cent, which is impressive, he opined. And the profit growth is 95 per cent for the past three years. Similarly, the profit growth for the past five years is 46-47 per cent. The profits for the June, September and December FY20 quarters were robust.
Jain added that the profit for the September FY19 quarter was Rs 28 crore. The September quarter is generally better for this company, he said. In September FY20, it registered Rs 39 crore profit. In December FY20 quarter, it reported Rs 7 crore profit, compared to Rs 2 crore the previous year of the same quarter.
“Rossell India is Rs 400-440 crore company, and is a pack of Rs 37-38 crore,” Jain mentioned.
Jain said, “I personally prefer this company better. So, after evaluating all these fundamentals, this stock is very attractive. And I think, it can achieve a good target. Some of the known investors are also associated with the company, along with few big names in public shareholdings. I will strongly recommend to invest in this stock.” Commodities stocks like tea, sugar, rice stocks are performing extremely well in the market. So, the target to buy Rossell India is 160-170, he added.
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