Stock to buy: Kalyani Steels Ltd is Avinash Gorakshakar’s ‘Superstar Pick’ for 2021 - Here are the reasons investors should know

Market expert Avinash Gorakshakar in a Zee Business ‘2021 ke Superstar’ show revealed that his pick for 2021 will be from metal sector. Picking Kalyani Steels Limited as his top pick for the next year,  Gorakshakar said this is a very good opportunity to buy this metal share as it likely to show a good rally from the current level. 

He said there are three reasons for the same. First, the metal company deals in commercial vehicles, tractors, and supplies its products to oil and gas companies and defense sector—all of these sectors have the potential to outperform.

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Second, Company’s has performed exceedingly well last year, he said.  Gorakshakar said the company has earned a profit of Rs 1037 crore last year. The company also did well in the first half of this year and showed good numbers in second quarter and is expected to book good profit even this year and likely to post even better result in 2022. Most importantly, it is available at very attractive valuation currently,” the market analyst said.

Third reason is that the company has Rs 400 crore in cash and is totally a debt-free company and it also continues to improve its EBIDTA margin.

“Considering all these factors, I believe that Kalyani Steels Limited should be bought at current level. It is very much likely that the company will hit a target of Rs 325 in a year. This stock will be my superstar pick for 2021,” the market analyst added.  

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