Stocks to buy with Anil Singhvi: Mangalam Cement - Know features and levels to buy | Sandeep Jain explains

In a chat with Anil Singhvi, Market Guru and Managing Editor of Zee Business, Sandeep Jain who is a market expert revealed the gem stock for today. Sandeep said that Mangalam Cement Ltd is a company from Rajasthan and he has been tracking it for the past several years. The company belongs to B.K. Birla Group and the results of UltraTech have also been very good. You can say that the company is somehow related to UltraTech as well, he added.

Detailing about the company the market analyst said that the fundamentals of the company are very good. He said that the company should be re-rated as it is available at only Rs 700-750 crore.

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Recently the company has also done its capacity expansion because of which the balance sheet of the company has shown lots of improvement, he added.

Sandeep said that the return on capital employed of the company was in single digit earlier which has now increased to double digits that is 16.5 percent. The Return on equity ratio (ROE) of the company has also increased from 3-5 percent to 14 percent.

Talking about the book value, the analyst said that the price to book value of the company is very cheap that is today it is around 1.3-1.2 and that is very impressive.

While on the profit front, he said that the company has booked huge profit in 5 years which is around 30 percent Compound Annual Growth Rate (CAGR). On the other hand, there is not much improvement in the sales part, which is only 5-7 percent, he added.

Explaining the reasons behind the gain Sandeep said that the operational performance management (OPMs) of the company has increased. He said that the highest ever OPM was recorded in the December quarter that is around 23 percent which is very impressive.

In December 2019 the company has earned Rs 12 crore while in December 2020 it increased to 37 crores, he added. The analyst said that based on the fundamentals and the forthcoming results investors can buy the stock at these levels.

He added that the stock of the company will easily achieve the target of Rs 330-340 in the coming days. He also informed that the company has hit a high of Rs 470 earlier hence he is very bullish on the stock.