Zee Business Managing Editor Anil Singhvi, in the latest episode of ‘Sadabahaar Sethi Saab’ show, spoke to market analyst Vikas Sethi and asked him to reveal his top picks that can generate good returns for investors
See Zee Business Live TV Streaming Below:
1st Cash Pick: Grindwell Norton
Talking about his first pick, Sethi said that Grindwell Norton pioneered the manufacture of grinding wheels in India in 1941. In 1990, Saint-Gobain acquired Norton Company, USA, worldwide and thereby became a shareholder in GNO. In 1996, Saint-Gobain increased its equity stake, making Grindwell Norton its first majority-owned subsidiary in India. Today, Grindwell Norton businesses include Abrasives, Ceramic Materials Businesses (Silicon Carbide and Performance Ceramics & Refractories), Performance Plastics and ADFORS. The Group currently holds 51.66% of the equity capital of Grindwell Norton. Steel sector will see good demand from the products of the company. It is a MNC company, Financials of the company are extremely strong and it is a debt free company. Return on Equity is 15$, Return on Capital employed is 23%. The target on the stock is Rs 950 in short term and Rs 1000 in long term with stop-loss of Rs 885.
— Zee Business (@ZeeBusiness) April 26, 2021
2nd Cash Pick: Maithan Alloys
Maithan Alloys is among India’s leading manufacturers and exporters of niche value-added manganese alloys. The company has emerged as a reputed provider of customized manganese alloys to large and growing steel companies the world over. Maithan Alloys Limited is engaged in the business of manufacturing and exporting of all three bulk Ferro alloys- Ferro Manganese, Silico Manganese and Ferro Silicon. It is also engaged in the generation and supply of wind power and has a captive power plant. They create Ferro Alloy products that are of the absolute finest quality. Ferro alloys are alloying elements that enhance steel strength, durability, anti-corrosion and anti-stain properties. There is a good demand for the company’s products. Valuations of the company are cheap and P/E earnings ratio is 10, Return on Capital employed is 22%, it is a Zero Debt company and last 4 years CAGR is 30%. The target price on the stock is Rs 760 and stop-loss is Rs 715.