Top stocks to buy with Anil Singhvi: Tata Metaliks Ltd is Sandeep Jain's pick today for good returns, check target

In a conversation with Zee Business Managing Editor Anil Singhvi, Market Analyst Sandeep Jain has picked Tata Metaliks Limited for good returns on the back of strong fundamentals.

Sandeep Jain said "Seeing the current situation, I have already recommended several stocks from the steel sector earlier. PLI scheme has come, the government is also very focused and now the metal sector is rebounding. Infact steel prices are also growing strong."

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Speaking about the company, the market analyst said that Tata Metaliks Limited is a good quality company and is one of the leading producers of pig iron and ductile iron pipes.

He added that the company is promoted by Tata Steel which is another big trigger.

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जानिए संदीप जैन आज Tata Metaliks पर क्यों हुए बुलिश?#StockMarket #Investment @AnilSinghvi_ @SandeepKrJainTS pic.twitter.com/YDsPjEZztr

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Talking about the valuations of the company the market analyst said that considering the valuations, the shares of the company is cheap. "The stock is at the PE multiples of 12, return on equity is around 20 and the company is consistently making a profit. In the last 5 years the profit CAGR is around 14-15 percent," he added.

The company is continuously reducing its debts which is now of 160 crore. The debt-equity is of 0.12. The PAT of the company in June quarter is of 95 crore compared to the loss of 12 crore in June last year, the analyst said.

He added that in the last two quarters the company has earned 75 crores respectively and has a PAT of 327 crore in last one year.

Talking about the shareholding he said, "Tata Steel holds 7 percent, FIIs and DIIs also have confidence in the company while the government holds 0.79 stake.

The market analyst suggested the investors to buy the stock and said that even if the price falls there is no need to worry as it will get a good support of Rs 1100-1150 Jain gave a target of Rs 1450 in 6 to 9 months for this counter.