Budget 2020 MyPick: Go for Cummins India, this expert tells investors
Just a few days to go for the presentation of Union Budget 2020 and all eyes are on Finance Minister Nirmala Sitharaman.
Just a few days to go for the presentation of Union Budget 2020 and all eyes are on Finance Minister Nirmala Sitharaman. Major industries, startups, investors to the common man, all are eagerly waiting for the budget speech, but before that, they are all also looking for the perfect stock where they can expect the perfect outcome - great returns on their investment!
Zee Business aims to help its viewers with stock selection by giving them the right and in-depth insight into revealing teh name of stocks that are expected to do very well. Today, our expert reveals that investors should eye Cummins India stock positively and bet on it to do well going forward.
According to Blue Ocean Strategic Advisors Director , Ashish Maheshwari, Cummins India is the best stock to choose because this budget government may take steps that will lead to a rebound in the Capex cycle in the private sector, If it happens, Cummins will get the biggest benefit and the stock price can even reach to Rs 650-mark till the budget day.
Sudharshan Share Price
Earlier, Zee Business had suggested a variety of stocks where investors can try their luck. Investors can go for this chemical stock called Sudharshan stock. With chemical stocks performing well these days, Deepanshu Bhandari, Senior Research Analyst, Zee Business suggested to keep an eye on Sudharshan stock.
REASONS WHY TO FOLLOW THIS STOCK
- It is India's largest and world's fourth largest company that produces colour pigments. It has vivid portfolio with Organic, inorganic and effect pigment.
- It has a market share of 35% in India and globally they have the biggest clients. They export their products in 85 countries.
- If you compare Sudharshan stock with other chemical companies then it has low cost of manufacturing. This gives the company benefits with margins. If we observe previous quarters the raw material cost has been declining, so there can be a boost to this stock.
- This company is focusing on value added and high margin products. They have huge number of clients which will help them to push their products.
- They have plan to expand their Capex by Rs 1000 crore in next 5 years in order to increase the capacity of the existing plants. It is expected that the revenue of this company will reach from Rs 3500 cr to Rs 4000 cr. In order to boost their Capex and to make their balance sheet debt free, they have sold their Non-Core assets in FY1 which have made their balance sheet healthy.
- Inverted duty structure is imposed on the products of chemical industry. In import products, its less charged and in finished products its highly charged. If its get corrected so, cash flow and consumption will improve and there will be benefit to all chemical companies. As Sudharshan company is the leading one in this industry so they will get most of the benefits.
- If we look at their profit graph, it has increased in last 4 years. In FY16 the profit 70 crore which has increased to 135 crore in FY19. Its expected that they will perform better in future.
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