Stocks to buy with Anil Singhvi: Sandeep Jain recommends Amines & Plasticizers - Here is the reason he gave
In todays edition of Jain Sahab Ke Gems show, stock market analyst Sandeep Jain, while speaking to Zee Business Managing Editor and Market Guru Anil Singhvi, named another stock for investors to make good gains from.
Stock to Buy With Anil Singhvi: In today's edition of 'Jain Sahab Ke Gems' show, stock market analyst Sandeep Jain, while speaking to Zee Business Managing Editor and Market Guru Anil Singhvi, named another stock for investors to make good gains from. Today, he has recommended a stock that he said has potential to give high returns to investors. The stock he picked today is Amines & Plasticizers Limited and here is why.
According to Sandeep Jain, incorporated in the year 1973, Amines & Plasticizers Limited (APL) is one of the oldest chemical manufacturing company in India. Amines & Plasticizers manufactures a variety of amines, plasticizers, and gas treating solvents. The company supplies its organic chemicals to oil refineries, natural gas plants, ammonia plants, and pharmaceutical companies located in India and elsewhere throughout the world.
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In today's episode, market analyst Sandeep Jain said, "The fundamentals of this company are very strong and the PE multiple of its stock is 11. The return on capital employed (ROCE) is around 25-26 percent. and the return on equity is 28 percent. The company has reduced its debts in last few years. If you see the profit CAGR of the company in last three years, it has shown 21-22 percent CAGR growth and 32 percent Profit CAGR in last five years."
"The company has performed extraordinarily in last few quarter results." The last year December quarter results were good. The PAT (profit after tax) of the company is 2019 December was 5.86 crores and in 2020 December, the PAT of the company was 7.82 crores. The promoters have also increased the stakes in the company. At present, Amines & Plasticizers is available at very good levels. I'm very bullish on this stock. Investors should buy this stock at these current levels. It will be beneficial for them in the future," he further added.
Amines & Plasticizers: Investors Strategy
On what should be the strategy that a stock market investor can maintain in regard to Amines & Plasticizers Limited shares, Jain told Anil Singhvi, "Amines & Plasticizers Limited stock is currently trading around Rs 78.60 and one can target this stock at Rs 109."
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