Stock to buy with Anil Singhvi: Vikas Sethi picks Dollar Industries, Sonata Software - Check target, stoploss here

In conversation with Zee Business Managing Editor Anil Singhvi, Market Expert Vikas Sethi picked two cash market stocks which can give good returns in short term. The stocks pick by him are Dollar Industries Ltd and Sonata Software Limited.

Speaking on Dollar Industries, the market expert said that it is a solid company from textiles sector. He said that complete textile sector is in focus.

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Talking about the fundamentals of the company Vikas said that return on capital employed of the company is around 20 percent, debt equity ratio is also manageable and reasonable. Even if we compare its valuations with similar companies like Lux Industries which is trading at the multiples of 47-48 and Dollar Industries is trading at the multiples of only 22-23.

He suggested investors to buy the stock at the levels of 365 and gave a target of Rs 385 and stop loss of Rs 350.

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The second stock picked by the market expert is a mid-cap IT stock that is Sonata Software Limited. The company works in a platform led digital transformation business and caters to several growth industries like manufacturing, retail, travel, etc.

Talking about the valuations he said the company gave a dividend of 25 paise last year and has a good return ratio of 27-28 percent, return on capital employed is of 37 percent and June quarter results were also very good.

The company also reported a PAT of 86 crore ka PAT compared to 49 crores in last year. FIIs are also showing interest in the company as in December 2020 FIIs had a share of around 12 percent which has increased to around 15.5 percent in June, the market expert said. He gave a short term targe of Rs 885 and stop loss of Rs 840.