On Wednesday, July 31, the stock market opened in green due to mixed global cues. The benchmark indices jumped as the market saw buying in bank stocks.

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At 1.34 PM IST, Sensex was up 252.5 points or 0.31 per cent, at 81,707.92 and Nifty was up 89.1 points or 0.36 per cent, at 24,947.50.

Meanwhile, market analyst Sandeep Jain suggested buying a PSU stock for up to 23 per cent gain.

PSU stock to buy - Balmer Lawrie & Co 

Jain has recommended buying Balmer Lawrie & Co shares from a short to long-term perspective. He has given the first target of Rs 330 and the second of Rs 350. The stock closed at Rs 284.9 on Tuesday, July 30.

This way the stock has a potential upside of up to 23 per cent.

Why analyst is bullish on Balmer Lawrie stock?

Market expert Sandeep Jain has chosen Balmer Lawrie for buying. The analyst said that this is a 160-year-old company. The company's stock had recently touched the level of Rs 320. The company's revenues are quite diversified. The company has a good market share.

Balmer Lawrie's fundamentals

Sandeep Jain has chosen this stock earlier also. According to him, the company has a good profile and its credit rating is also good. The stock trades at a PE multiple of 18. There is a dividend yield of 3 per cent. The growth of profit in the last 3 years has been 31 percent and the growth of sales has been 15-16 per cent. It is a zero-debt company.

"The company had presented a profit of Rs 63 crore against a profit of Rs 56 crore. The promoters' stake in the company is good. Apart from this, there is participation of domestic and foreign investors in the company. This stock can be bought at this level for the coming time," said Jain.

Share price history of Balmer Lawrie

On Wednesday at 1.23 PM IST, shares of Balmer Lawrie were trading at Rs 294.7 each, up 3.5 per cent on BSE. On a YTD basis, the company has provided returns of around 32 per cent while 93 per cent in a year, and 165 per cent in two years.

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