Stocks 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 today is Tanfac Industries Ltd, and here is why.

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Tanfac Industries Ltd is a joint sector company promoted by Aditya Birla Group and Tamil Nadu Industrial Development Corporation (TIDCO). The company is around 50 years old and has given significant returns from 5-7 quarters. Apart from the quarter results, the fact that Aditya Birla has a shareholding in the company puts more confidence in it, claimed the analyst.

Since the chemical industry has been performing well in the stock market, Jain reasoned that Tanfact industries are a leading producer of the chemical industry, including hydrofluoric acid. He said that the company had been evaluated at a low price, with a PE multiple of just Rs 13. The return on the capital employed is 35 per cent. Return on equity is 23 per cent, and the company is a zero-debt company. 

The profit compound annual growth rate (CAGR) from 5 years of the company stands at 48 per cent, and from 3 years, the CAGR has been 22 per cent. The company's operating Profit Margin (OPM) stood at 23 per cent. The company's profit after tax (PAT) in the years 2020 and 2021 stood at Rs 10 crore and 15 crore, respectively. 

The share capital of the company is Rs 10 crore. Apart from having Tamil Nadu Government and Aditya Birla as shareholders, Jain claimed that the company also enjoys the shareholding of three major Public shareholders. He gave a target of Rs 690- Rs 730, while the company has reached a high level of Rs 780 once already.

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