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Anil Singhvi Top Stock Picks: Ramco Industries finds favour with Market Guru; know why


Top Stock Picks: In this edition of ‘Maalamaal Weekly’, Zee Business Managing Editor Anil Singhvi picks Ramco Industries as a top Buy. The Market Guru finds the company’s performance excellent in important segments with strong fundamentals and attractive valuations. RIL, which is a holding company of Ramco Cements has the latter’s shares worth Rs 3150 cr or a 22 per cent stake (#ZeeMaalamaalWeekly).

This is three times the market cap of entire Ramco Industries which is currently at Rs 1150 cr. RIL has also been increasing its stake in the cement company.

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 RIL is not just a holding company but has its own strong business. The company manufactures asbestos sheets and is a market leader in this segment. The demand for such sheets has grown significantly, especially after the Amphan cyclone that caused havoc in Assam, West Bengal and Odisha, Singhvi said.

The prices of asbestos sheets have also shot up by 35-40 per cent. The manufacturing unit is working at 112 per cent capacity, which is a huge achievement considering the ongoing lockdown restrictions.

This is a flourishing business and the company has been doing well. The profits from this segment are around Rs 80 cr.

Another important thing that works for it is the fact that the company is almost debt free. Its debt is very insignificant –  around Rs 125 cr. The balance-sheet of the company will further strengthen once the debt gets pared.

This is a good investment option and should be bought when the market is down, Singhvi advises investors. The stock is currently trading around Rs 191.

Market Expert Kunal Saraogi said that the stock looks quite strong on charts. There is a sequence of higher bottom on this stock with rounding bottom pattern at the lower levels. A base has formed around Rs 180 and it is highly unlikely that the price will breach this level in the downward direction.

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On the upside, there is a resistance at around Rs 215 – Rs 220, which is 10 per cent higher from the current levels. It can be a short term target. The stock should be bought at current levels with a stop loss of RS 180, Saraogi said.


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