In chat with Anil Singhvi, Sandeep Jain picks IOL Chemical and Pharmaceutical for bumper returns

Tradeswift Director Sandeep Jain in a conversation with Zee Business Managing Editor Anil Singhvi today picked a stock which is a combination of chemical and pharma sectors - IOL Chemical and Pharmaceutical. 

Jain points out the stock has completed its correction journey and the consolidation phase has started. The shares of the company have been trading above.Rs 600 per equity share level.

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He adds, this company is into specialty chemical making business and also a market leader with 35 per cent share in Ibuprofen manufacturing. Jain said, "We already know how good chemical and pharma stocks are currently performing on the exchanges." 

Since the last two years, the company has reported extraordinary quarterly results. It reported Rs 115 crore profit in December 2020 quarter as compared to Rs 95 crore in December 2019 quarter. 

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The fundamentals of the company are splendid, so is its shareholding pattern. Ashish Kacholia, who is one of the celebrity investor in the stock market, has acquired around 1.28 per cent stake in this company, which boosts the confidence of other investors, Jain explains.   

It’s a good stock with respect to valuation too, Jain affirms. He says, in the last five years, the profit CAGR of this company is around 49 per cent, its net profit margins are around 19 per cent and it is almost a zero debt company, with a market cap of around Rs 3500 crore. 

Jain predicts the company would grow exponentially and has been under his radar for quite some time. He suggests investors purchase the shares of this company and sets a target of Rs 750-790 per share level in the next six to nine months, and they are likely to touch around Rs 890 per share highs.