Vijay Kedia portfolio: Amid Indian indices trading at record highs, stock market investors are busy scanning marquee investors’ portfolio to find out value picks. For such investors, there is a piece of good news as one of the Vijay Kedia shares Cheviot Company has delivered around 70 per cent return (surging from ₹736 per share to ₹1265 per equity share levels) to its investors. Return given by this small-cap stock in last 6 months is more than double of the BSE Small-cap Index return in this period. In last 6 months, BSE Small-cap Index has surged around 34 per cent.
According to stock market experts, the agro industry stock is under selloff pressure due to profit-booking but it may bounce back strongly from around ₹1100 per share levels. They advised investors to buy after profit-booking as the Vijay Kedia stock may go up to ₹19500 per equity levels.
Advising stock market investors to avoid this stock to buy at current levels; Sumeet Bagadia, Executive Director at Choice Broking said, “The small-cap stock is witnessing profit-booking after sharp rise in 2021. It may further go down up to ₹1150 levels. So, buying in the stock at current levels is not advisable. One should wait till this profit-booking gets over.”
Echoing with Sumeet Bagadia’s views; Rahul Sharma, Co-Founder at Equity99 said, “Cheviot Company is engaged in the business of Jute products. The company manufactures jute products and jute fabrics. It caters to both domestic and international markets. The company has good ROE (Return on Equity) of 10.3 per cent and a ROCE (Return on Capital Employed) of 12.6 per cent. The company is almost debt-free and has a Debt Equity or DE ratio of just 0.01. The company has been maintaining a superb dividend payout ratio of 70.25 per cent. Stock is available at a PE multiple of just 9.32 against an industry PE multiple of 13.4. The company has been consistently generating positive Operating cash flows.”
Highlighting the triggers for this Vijay Kedia portfolio stock post-profit-booking; Santosh Meena, Head of Research at Swastika Investmart said, “Ban of single-use plastic and growth in the export market are key positive triggers for the company. Technically, the overall trend of this counter is bullish; however, it is witnessing a short-term correction following a strong rally on the back of a hefty dividend. We may expect some more correction towards the previous breakout point of ₹1100 that may coincide with the rising 200-DMA but this correction will give a buying opportunity because it may bounce back from there towards ₹1500 to ₹1600 levels.”
Suggesting investors to buy this Vijay Kedia stock for medium to long term; Rahul Sharma of Equity99 said, “We recommend buy in this counter at ₹1100 per equity share levels for ₹1950 target. But, one must maintain stop loss of ₹1100 while taking this position.”
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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