Stocks To Buy: In chat with Anil Singhvi, Sandeep Jain bets big on THIS sugar stock – Check fundamentals, triggers and targets here

Market analyst Sandeep Jain on 16th September picked a stock from the commodities sector. In a chat with Zee Business Managing Editor and Market Guru Anil Singhvi, during the popular TV show ‘Jain Sahab ke Gems’, Jain recommended to buy the stocks of Dwarikesh Sugar that has been reporting robust PAT in the past few quarters. 

Jain said that this sugar stock Dwarikesh Sugar was hardly recommended. The reason is because of its debts. “I was hesitant to talk about this stock last year. There are a few industries like sugar, textile that have debts to increase capacity, but that is their nature,” he added. 

He further mentioned that this company was started in 1994 from 2,500 TCD to 21,500 TCDs. It is one of the biggest sugar players in India. And it has also created power generation capacity, and manufacturing industrial gauge. Overall, the best part of this company is the growth!  

In past 5 years, the company has registered a growth of 21-22 per cent, improved balance sheets, made huge profits. It has been controlling its debts regularly, which is giving a good dividend deal of around 2 per cent. The company also has a strong credit rating of A plus. This also gives a good confidence! he added.   

Jain asserted that the shareholding pattern is impressive. FIIs and DIIs have continuously increased their stakes in the company. At the same time, there are 7-8 per cent of FIIs and DIIs in the company. And if you will see the individual shareholders list then you will notice that there are some of the known investors with strong stakes. That really gives you a good confidence in the stock. 

Similarly in the quarterly results, in June 2021, it has posted a PAT of Rs 27 crore against Rs 18 crore in June 2020. It performed extraordinarily in March 2021 quarter, which is considered one of its best quarters over these years - a PAT of Rs 48 crore, he added.

जैन सा'ब के GEMS शेयर...

Dwarikesh Sugar की बढ़ेगी मिठास !

संदीप जैन से जानिए कंपनी के फंडामेंटल्स, तेजी के ट्रिगर्स और टार्गेट #StockMarket #Investment @AnilSinghvi_ @SandeepKrJainTS pic.twitter.com/OlLAGov4Km

— Zee Business (@ZeeBusiness) September 16, 2021

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On TTM basis, the company is earning Rs 101 crore PAT.  The valuation of the company is around Rs 1,266 crore. Sugar stocks are in demand. And I think the crude oil prices are getting resilient and their mixing has also started with ethanol. So, there are so many structural changes in the industry and I feel in the coming day this stock will perform well. Targets will be Rs 80-85.  

(Disclaimer: The views/suggestions/advices expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)