Top Pick with Anil Singhvi: Sandeep Jain recommends this stock for healthy returns; know fundamentals, triggers, targets and more

In the show ‘Jain Shaab Ke Gems’, Zee Business Managing Editor and Market Guru Anil Singhvi spoke to Sandeep Jain, Director at Tradeswift Broking Pvt. Ltd., to know his today's stock recommendation.

Jain suggested Permanent Magnets Limited (PML) stocks to investors for healthy gains. He said: "This is a very quality company."

Earlier also when I suggested this stock at the lower levels, it touched the target easily, and has shown a high of 690, he added. 

Commenting on the current situation, he said that the stock is back at Rs 480 to Rs 380-390 levels, making it a great moment to purchase.

He also mentioned that midcap and small-size stocks have been rising in the recent 5-10 days. As a result, I am confident that this stock will do even better in the trend.

As midcap and smallcap companies are performing well these days, it is important not to miss out on the chance to invest in high-quality midcap and SmallCaps stocks.

Talking about the history of the company, Jain explained, there is a lot of optimism before Budget, and this company, 'Permanent Magnets,' is a good one. It has been in existence since 1963, and at that time it partnered with an Italian company 'Centro Magneti Permanenti' (CMP). 

It is the country's first and largest manufacturer of magnets. It makes items from aluminum, nickel, and cobalt. 

Electronics, power meters (power is currently a buzzing industry), communications, defense, space research, and railway transport are just a few of the industries that their products are used in. That is why this stock is so amazing, according to the analyst.

Valuation

The company's worth is within budget. 

PML upgraded its technology with help of Sumitomo Corporation (Japan).

Fundamentals

The company is trading at a 15PE multiple, resulting in a 40% return on capital employed and an 18-19% return on equity. 

In terms of profit during the previous three years, it is comparable to 52 per cent. while profit over the previous five years has been 57 per cent, it is a zero-debt company.

In terms of the overall look-up, Jain stated that shareholding patterns are also quite impressive, with 60% of promoters and renowned investors represented in the individual holdings list.

Quality firms, such as small size, midcap, and nano-cap stocks, are what investors are looking for, and they invest in them for the long term. 

Sandeep Jain agrees that we must keep an eye on these stocks and invest in them.

Target
1st target - Rs 450
2nd target - Rs 480

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