Budget 2020 MyPick: Know what is the favourite stock for Sethi Finmarts Vikas Sethi before Budget
Cera Sanitaryware is a strong stock with strong fundamentals and the company also has good financials with low debt levels. The companys return on equity is 15%.
There is still some time for Budget 2020 announcements to happen (1 February) and the expectations of the domestic markets from the budget are already sky high. If you are also investing in the stock markets, then Zee Business brings before you a stock which can give you high returns on investments. This powerful share is Cera Sanitaryware. This share is quite strong. Market experts have been recommending this share and are expecting it to do well. The investors should strongly focus on this stock is what they say.
Vikas Sethi of Sethi Finmart says that Cera Sanitaryware is a leading sanitaryware manufacturing company in the country. Cera Sanitaryware also manufactures products like tiles, bathroom fittings and building material. Cera Sanitaryware also has a top-class branding and marketing strategy with a very expansive market network, Sethi says.
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The company is fundamentally strong and has raised expectations in the market because of the government focus on real estate and infrastructure. If the government announces some positive measures for the real estate and infrastructure sector, the company with already strong fundamentals could likely benefit even further. Even other companies who are in the business of making building materials will benefit.
Sethi says that the balance sheet of Cera Sanitaryware is quite strong and the company also has strong financials and the company has low debt levels. The company's return on equity is 15%.
Moreover, the return on capital and return on capital employed is around 23%. Sethi further says that he thinks the investors should invest in this stock this year. The one year target for this share is Rs 3500. The company's current share price is around Rs 2700.
The government recently announced that it will be spending Rs 102 lakh cr on infrastructure projects in the next five years.
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