Anil Singhvi's return gift to investors on his birthday! Invest in this stock with long term view

On his birthday today, Zee Business Managing Editor Anil Singhvi has recommended a share to buy as a return gift of sorts! The stock is National Aluminium Company Limited (Nalco). Investors can go ahead and buy it as the share is good for investment purposes, he says. Today, Nalco shares were trading around Rs 31.25 on Nifty, up by over 4.5 per cent. Singhvi said that investors ought to trade in this share.

From investment point of view:
Singhvi said that Nalco is a metal stock and Zee Business has been telling its viewers that any recovery in the stock markets will be first seen in the metal sector. Singhvi said that he has a liking for metal stocks. Metal stocks are a “clear cut Buy” and whenever the markets recover, the metal stocks will take the lead, he added.

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अपने जन्मदिन पर मार्केट गुरु अनिल सिंघवी का दर्शकों को रिटर्न गिफ्ट....लॉन्ग टर्म के लिए इस शानदार शेयर में करें निवेश#HappyBirthdayAnilSinghvi #HappyBirthday #AajKe2000 @AnilSinghvi_ pic.twitter.com/EQRkuCcssx

— Zee Business (@ZeeBusiness) June 2, 2020

Giving reasons on why Nalco, Singhvi said that the stock is valued around Rs 30 while its dividend is Rs 5 which means there is a 14 per cent dividend on the price of this stock. This is a good return for any public sector company, he said. Another important aspect about this share is that the company has Rs 20 cash for every share which means it is giving around Rs 10 Cash EPS per share.

Cash Earnings per Share or Cash EPS is a profitability ratio that measures the financial performance of a company by calculating cash flows on a per share basis.

The company is cash rich while the shares have low valuations making it a strong pick, Singhvi said.

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For traders:
Singhvi said that for traders there are small target prices at Rs 33 and Rs 35. He said that the metal stocks including Tata Steel and Hindalco have been having a good rally. It is likely that the second rung stocks may now see some momentum, he said.