SIP stock with Anil Singhvi: Market Guru gives 5 reasons why you should have this stock in your portfolio

In the 'SIP Stock' programme of Zee Business, research analyst Ashish Chaturvedi picked Waterbase shares, saying the company has a very strong promoters' background with a high-growth business. In chat with Zee Business Managing Editor Anil Singhvi, Chaturvedi said promoters of the company have 34 years of experience.  

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Talking about the company profile in detail, he said, "It is an FDA and EU approved company. Company's cash availability is also set to increase in near future. Currently, the company has 25 per cent sale from cash business, which the company has hinted that it will grow further. Company has business in two small segments—farm care equipment and frozen sea food. Though frozen sea food business caters to small segment but since it is organized, it has edge over other players in the business. Also, company plans to expand this business."

Best part is that promoters trust their company to do well, he said. "As against 67.1% holdings in December 2020, it has now increased to 68.85% in the March quarter. It also does not have any debt and it caters to a very high-growth business," said the market analyst.  

Zee Business Managing Editor, talking about its prospects, said there are many points that makes it a very good company.  
 

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The most important trigger for the companies catering to sea food and shrimp business is that sea food prices have increased by 15 to 18 per cent in April.  
Another reason is that the company has made good expansion in the past and that will start reflecting in business of coming quarters, said the market guru.
There is also good export demand from America for sea food and since the company has worked towards it, this will help it in the longer run, said Anil Singhvi. 
Two other very crucial factors are that the company is debt-free and has good cash. "It matters a lot when a company has Rs 16 per share cash. The best part is that it is also increasing. Since the company is going in cash and carry model, it will further help the company. Besides, promoters' interest in the company cannot be ignored, " concluded Zee Business Managing Editor.