Investors looking for a long term pick with strong fundamentals and attractive dividend payouts should watch for Kalyani Steel. Zee Business Managing Editor Anil Singhvi, today, in his popular TV show ‘Maalamaal Weekly’ recommended this stock (#ZeeMaalamaalWeekly) to investors.
The company is into the business of automotive steel.
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लॉन्ग टर्म के लिहाज से मजबूत फंडामेंटल और आकर्षक डिविडेंड वाले इस दमदार शेयर में करें निवेश…अनिल सिंघवी को क्यों है पसंद? जानिए 3 बड़े कारण#ZeeMaalamaalWeekly#NSE #BSE #Sensex #Nifty @AnilSinghvi_ pic.twitter.com/g94i0JlJFw
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Kalyani Steel – a Bharat Forge Group company has strong parentage and sets high corporate governance practices. The company has an impressive clientele in India and abroad including the likes of Tata Motors, Mahindra and Mahindra, Maruti Suzuki, Volvo and Hyundai.
The stocks has attractive valuations with a Price to Book Value of 1. The return on equity is around 16 per cent which is good. The dividend payout is also consistent with this company. The company is stable, Singhvi said.
This Bharat Forge group company is completely debt free with hardly any net debt at all. The debt to equity ratio is 0.1. The company has a market capitalization of Rs 950 cr with a cash reserve of Rs 300 cr.
The company did its highest sales last year and has margins at around 15 per cent. The levels at which this stock should be bought is between Rs 190 and Rs 200. The current levels of Rs 240 are not right for buying. Investors should book profit if the stock reaches around Rs 265 price level.
The Market Guru recommends Buy on this stock at levels below Rs 200. One should accumulate the stock slowly, he added. Kalyani Steel is not a trading stock but an investment grade stock. One should not worry as every stock at some point is available at lower levels. He assures the investor that this stock will be available at lower valuations and should not be rushed into.
Market Expert Kunal Saraogi said that the chart suggests a strong support zone around Rs 210. He said that it is unlikely that the stock will violate this level in the downward direction. He recommends a Buy on the stock at around Rs 215. This level is a secure support level, he said.
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There will be a resistance at Rs 260 in the medium term while there are aggressive targets for this stock in the long term. It may reach a high of Rs 300, he said.