Stocks to Buy: Polyplex Corporation is a recession proof stock, says this research; experts explain why you must buy it!

Exclusive Research: Amid concerns over global recession, Zee Business’ Arman Nahar brings exclusive research on a stock that has been recession. In chat with Zee Business Managing Editor Anil Singhvi, Nahar said that his research was on identifying stocks that show a positive momentum even in these recessionary markets.  

One such stock is Polyplex Corporation where the income of the company rose by 30 per cent in in the recession year between FY07 and FY08. The income rose by 12 per cent in the next financial year as well, Nahar said. 

Not just the income, Polyplex increased its margins as well, Nahar said. The margins in FY07 were 11.7 per cent which went up to 16.5 per cent and 20.7 per cent in FY09. 

He further added that the current dividend yield is 8 per cent. In the last 4 financial years, the company has distributed Rs 1500 crore as dividend payout which is one-fourth of the present market cap.  

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Moreover, this company has a reputation of maintaining its margins even in the event of high recession hits the market. Even the current high oil prices have not dented its margins, the research said.

Adding to this, Singhvi said that this is one of the recession-proof stocks. This Stock will maintain its earnings and margins even in recession.

Rakesh Palviya explained that this stock is good for taking a long-term position in the market. Rs 2250 is the immediate trading target, stop loss is Rs 2030 and upside target Rs 2250.

Reiterating Palviya’s views another analyst Sandeep Jain extended support in favour of this stock.  He said that the dividend, growth, and the bottom line of the company are good. People should buy this stock even when the economy isn't doing so well. 

The Polyplex Corporation share today ended at Rs 2145 on the NSE and was up nearly 4 per cent from the last closing price on Wednesday.

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