Market expert Sandeep Jain bullish on this stock; check target price

The Nifty 50 and the Sensex surged to record highs in early trade on Monday, June 3, after a majority of exit polls indicated on Saturday, June 1, that the Bharatiya Janata Party (BJP)-led NDA will win more than 350 of the 543 Lok Sabha seats in 2024.

Meanwhile, market expert Sandeep Jain suggests buying Alufluoride stock from a short to long-term perspective. 

Why Sandeep Jain is bullish on this stock

Market expert Sandeep Jain has chosen Alu Fluoride for purchasing. The expert said that he had selected this stock for purchase earlier also and the stock had achieved the target price even then. The market is bullish but purchases should be made at slight dips. The expert said that the stock has to be bought only when a slight decline is seen.

Alu Fluoride- Target price

Jain has shared the target price of the stock at Rs Rs 630 each. The share last (June 1) closed at Rs 509.75 apiece. This means the stock can give up to 25 per cent returns from its previous closing price.

Shares of Alu Fluoride are trading at Rs 529.15 per share, up 3.8 per cent today on BSE at 2 PM IST.

Alu Fluoride's profile

The company has been working since 1990 and is a leading company in producing raw bulk-density aluminum in the country. The IPO of the company came in 1993. The expert said that the company's product is to convert waste material into wealth. The company also has a very good export portfolio.

Fundamentals

The company presented strong quarterly results. The PE multiple of the stock is 22-23 per cent. The company's return on equity is 24 per cent. In the last 3 years, profit growth has been 225 per cent and sales growth has been 63 per cent. Apart from this, the company has a debt of only Rs 24 crore. The company's margins were low in the March 2024 quarter. Foreign and domestic investors also have a stake in the company.

A look at company's Q4FY24 earnings

Alu Fluoride reported its fourth quarter's results for the financial year 2024 on May 28. The company's net sales were at Rs 45.71 crore in March 2024, up 29.39 per cent from Rs 35.33 crore in March 2023. Its quarterly net profit was at Rs 5.33 crore in March 2024, up 52.97 per cent from Rs 3.49 crore in March 2023.

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