15X Rise in 4 Years: Why analyst is bullish on this power transmission small-cap stock; know rating and target price

Headturner Small-cap Stock: A rise as high as 1,431 per cent in the four years from Rs 93.55 to the current level of Rs 1432.50. This is the journey of Pix Transmissions' stock, a small-cap firm, into the business of power transmission. A jump of that magnitude in a stock can wrest an investor's attention, specially if the stock is small-cap. And Zee Business market analyst Sandeep Jain  says that it's the beginning of a long journey as the stock has much more juice left in it.

He believes that, considering the market movements and potential in power transmission and ancillary companies, retail investors can keep this stock in their portfolios from a short-to-long-term perspective. 

Why Sandeep Jain picked Pix Transmissions 

Jain, director, Tradeswift Broking, says he has always been bullish on power transmission and ancillary companies, and he sees a bright future for Pix Transmissions since its business is multifaceted and spread in more than 100 countries.

He says it is the right time to purchase Pix Transmissions as it is available at the right technical levels.

It has already touched the level of Rs 1,570 and can help one get good compounding in the future, says Sandeep.

Pix Transmissions target price

Jain gives a 'buy' rating to Pix Transmissions with the target price in the range of Rs 1,570–Rs 1,590.

The expert says that the company has a diversified business and also works in chemical products.

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आज Pix Transmissions Ltd को क्यों चुना संदीप जैन ने?

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It has around 250–300 channel partners in over 100 countries, says Jain. 

How are the fundamentals of Pix Transmissions?

The company's return on equity is 17 per cent. In the last three years, profit growth of 28 per cent and sales growth of 17 per have been recorded.

The company reported a profit of Rs 22 crore in the December quarter.

Domestic investors also have a good stake in the company.

The promoters' stake in the company is 62 per cent.

(Disclaimer: The advice for investing in stocks here has been given by market experts. These are not the views of Zee Business. Consult your advisor before investing.)