Buy Rubfila International to make money; This share is important - Sandeep Jain reveals why to Anil Singhvi

On this auspicious day of Dhanteras, market analyst Sandeep Jain brings a stock that has the potential to earn bumper results. In today’s edition of ‘Jain Sahab Ke Gems’ he recommended a company that is into the business of manufacturing rubber threads. Know what works for this stock and why it is poised for growth. 

 Top Stocks To Buy: Rubfila International 

Rubfila International Limited (RIL) is a Public Listed Company promoted by Rubpro Sdn Bhd Malaysia along with Kerala State Industrial Development Corporation (KSIDC) and has been in operation since 1994.  

Watch Zee Business Tweet Video Below:  

आज के लिए जैन सा'ब का GEMS : Rubfila
क्या है इस शेयर की खासियत और किन लेवल्स पर करें खरीदारी? @AnilSinghvi_ @SandeepKrJainTS pic.twitter.com/OqsTwKZQDF

— Zee Business (@ZeeBusiness) November 12, 2020

Though the company is worth just over Rs 200 cr, it is a leading player in many segments. The company makes rubber threads which have applications in different areas like apparels, furniture webbing and bungee jumping. It is an undisputed leader in rubber threads with presence in more than 25 countries.  

As for the fundamentals, the stock is currently trading at a PE multiple of 13. It gives a dividend yield of 3 per cent. The return on capital is at 14-15 per cent. This zero-debt company has grown at a CAGR of 8-10 per cent over the last 3 years. The promoters have raised their stake by 2 per cent in the April-June quarter.     

This stock is currently trading around Rs 48. He said that he expected the stock to reach the target of Rs 50-55 within a few months.  

See Zee Business Live TV Streaming Below:

The government is also focusing on the Performance Linked Incentives (PLI) and on Wednesday it approved 10 sectors for availing the incentives. For mid cap, small cap, micro and nano cap companies, PLI could be a great enabler and positively impact margins, he said.