Strong fundamentals, valuations make Indo Borax and Chemicals Sandeep Jain's favourite
Strong fundamentals, spectacular valuations of Indo Borax and Chemicals caught the attention of Tradeswift Director Sandeep Jain today. The market analyst, while speaking to Zee Business Managing Editor Anil Singhvi, recommended this stock for investors.
Strong fundamentals, spectacular valuations of Indo Borax and Chemicals caught the attention of Tradeswift Director Sandeep Jain today. The market analyst, while speaking to Zee Business Managing Editor Anil Singhvi, recommended this stock for investors.
Jain said that Indo Borax was listed around 1993 and it has a history of around 40 years in operation since 1980. When it came out with an IPO at that time, it was over-subscribed by over 1600 per cent. Jain said that it has now come back onto his radar.
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The market analyst further added, Indo Barox, which is trading 10 per cent higher above Rs 750 per share levels, is a leader in manufacturing of boric acid. The current market cap of the company is around Rs 250-300 crore.
Talking about the internals of the company, Tradeswift’s Director said, the current valuation of Indo Borax is around 7-8 PE multiple, the return on capital of this company is around 16-17 per cent, most important he adds, that it is a zero-debt company.
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In the last three years, the company reported 20 per cent and 26-27 per cent sales and profit Compound Annual Growth Rate (CAGR) respectively, Jain explains. Moreover, the price to book value multiple is at a lower level around 1.45, which also adds tremendous confidence in the company, Jain explains further while praising Indo Borax’s fundamentals.
Jain suggests investors make conditional buy in this company the moment stock dips or can be bought today in staggered nature for better returns. However, he cautions to be very alert as the market itself is in the correction mode.
03:52 PM IST