Stocks to Buy with Anil Singhvi: Sandeep Jain recommends Punjab Chemicals & Crop Protection - Know why; check fundamentals, target, and more
In yet another episode of Jain Saab Ke Gems show, stock market analyst Sandeep Jain, while speaking to Zee Business Managing Editor and Market Guru Anil Singhvi, recommended another stock for investors to make good gains from.
Stock to Buy with Anil Singhvi: In yet another episode of 'Jain Saab Ke Gems' show, stock market analyst Sandeep Jain, while speaking to Zee Business' Managing Editor and Market Guru Anil Singhvi, recommended another stock for investors to make good gains from. Today, he has recommended a stock that he said has the potential to give high returns to investors. He picked Punjab Chemicals & Crop Protection Ltd, and here is why.
Punjab Chemicals & Crop Protection Ltd is worth Rs 18 - Rs 19 crore. This company has also been a SIP quality company. The company was originally established in 1975 under the name of Punjab United Pesticides & Chemicals Ltd. The company is focused on agrochemicals & speciality chemicals, and it has also established a separate manufacturing facility for the pharma sector, Jain said.
Analysts prefer Stocks from sectors like agro because they grow significantly around the budget. Apart from this, its stock is available at a very low PE multiple, Jain claimed.
The company gives a return of around 38-40 per cent on capital employed 40 per cent on equity, and the compound annual growth rate (CAGR) of the company in terms of profits has been 44 per cent. With great evaluation and strong fundamentals, the company only has a debt of Rs 90 crore.
The profit after tax (PAT) of the December quarter in 2021 has been Rs 22 crore. And the PAT of the December quarter in 2020 has been Rs 16 crore. The company stands at the highest-ever trailing twelve-month (TTM) basis of Rs 75 crore.
Despite being in loss till 2012-2013, the analyst claimed that the company is now in profit from consecutive 5-6 years.
Excel Crop Care Limited (Excel industries) used to be the promoter of this company. The FIIs (foreign institutional investors) and DIIs (Domestic institutional investors) of the company stand around 4-5 per cent.
He believes that the stocks are available at very reasonable rates and can be bought at the current levels, setting up a target of Rs 1630 to Rs 1680.
For more details, Watch Full Video Here:-
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.