Top Stocks To Buy With Anil Singhvi: Know why Sandeep Jain is bullish on Shakti Pumps stocks - check share target price here

In a conversation with Zee Business Managing Editor and market guru Anil Singhvi, the market analyst Sandeep Jain recommended to Buy Shakti Pumps for bumper returns during a special show 'Jain Saab Ke Gems'.

Jain being bullish on this whole sector had recommended KBS Pumps, Rotos Pumps, Kirloskar Pumps earlier for bumper gains.

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He points out, the central government's initiatives and schemes have pro-actively helped this sector to be in focus, especially in engineered pumps, industrial pumps, and solar pumps, which have been in more demand lately.

While speaking about the fundamentals of the company, the market analyst mentions, the promoters have experience of over three-four decades, and it has a presence in both international and domestic markets.

The company has over 550 distributors network and 15000 retailers network in the domestic market, says Jain, he further adds it has multiple marketing branches with a presence in 20 states, and they are doing business in 118 countries, specifically in the Middle East, US, Africa, and among other continents.

Jain also says, due to government schemes such as Kusum, this company has received many orders, and hence the last four-five quarters of Shakti Pumps have been splendid. Moreover, even the company's credit ratings upgraded since March from stable to positive, he added.

The market guru states, the company's return in capital employed (ROCE) is at 25-26 per cent, return in equity (ROE) is around 25 per cent, last three years profit CAGR is at 29 per cent, and five years profit CAGR stood at 134 per cent, and sales at 28-29 per cent growth, as well as OMPC, is improving by 15-16 per cent.

Except last quarter, due to some delay in implementation, the company reported losses as compared to Rs 30 crore PAT YoY, Jain says. Further adding that otherwise last three-four quarters have been spectacular in terms of earnings.

The market analyst says, the stock could be bought at the current level for a target of Rs 925 per share. The counter is trading over 1 per cent higher to Rs 778 per share at around 11:20 am today.