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Hidden Gem - March 2023 research report was released on 26 March 2023 by our research team. Hidden Gem of March month is a small cap stock from chemical sector with total market capital of less than 500 crores.
As we know, India continues to be a high growth economy and a significant portion of this growth comes from manufacturing sector. We have identified multi-bagger investment opportunity of this month, which belongs to chemical industry and is expected to multiply its revenue by two times in next 3 to 4 years. Company is going through expansion by increasing capacity of existing facilities and is expected to perform well over next 2 to 3 years considering favourable demand outlook of its products and sector tailwinds.
Hidden Gem Stock of March 2023
Our Hidden Gem stock of March 2023 belongs to specialty chemical sector. The company offers good upside potential and is a great investment opportunity for medium to long term investors.
Few facts which make this company a right investment candidate for long term:
1. More than 3 decades of experience with strong clientele from more than 20 countries is expected to augur well for the company over next 2 to 3 years.
2. Company offers a variety of products and is the market leader in its segment.
3. Company is increasing its capacity under ongoing expansion program by increasing capacity of existing facilities to meet growing domestic demands and also to tap opportunities in export markets.
4. As per management, company is on strong footing and will be able to utilize its additional capacity over next 3 years considering pick up in demand of its products in domestic market and increasing its penetration in export market.
5. Company has a DSIR (Department of Science and Industries Research) recognized R&D facility and offer superior quality products compared to competitors. Continuous focus on brand building and broadening its product portfolio is expected to yield higher profits and lead to increase in EBITDA margins.
6. Company is a debt free company having cash surplus in books with strong balance sheet.
7. The recent Capex (capital expenditure) for capacity expansion is done with internal accrual without raising any debt.
8. Management has rewarded share holders by paying regular dividends (healthy dividend payout of 20 to 30 percent of profits), dividend yield at current market price is around 2.
9. Last but not the least, stock is attractively priced at current valuations and offers good upside potential with limited downside risk in medium to long term.
Considering company’s plan to add additional capacities to drive revenue growth, favorable tailwinds for the sector due to anti dumping duty imposed by Govt to restrict cheap imports from China and attractive valuations, we find this company a good bet for long term investors.
Get access to our Hidden Gem - March 2023 research report and invest small portion of your savings in it to get rewarded in long term. Subscribe to Hidden Gems annual subscription (10 to 12 monthly research reports) @ Rs. 14,000 and start investing systematically in fundamentally strong small cap companies. To know more about Saral Gyan annual subscription services and discounts available on combo packs, click here.
On activation of your Hidden Gems subscription, you will also receive our recently released Special Report - 5 Hidden Gems to Buy / Accumulate (Released on 29 Jan 2023) at no additional cost!
To know more about our Special Report - 5 Hidden Gems to Buy / Accumulate, click here!
Get access to our Hidden Gem - March 2023 research report and invest small portion of your savings in it to get rewarded in long term. Subscribe to Hidden Gems annual subscription (10 to 12 monthly research reports) @ Rs. 14,000 and start investing systematically in fundamentally strong small cap companies. To know more about Saral Gyan annual subscription services and discounts available on combo packs, click here.
On activation of your Hidden Gems subscription, you will also receive our recently released Special Report - 5 Hidden Gems to Buy / Accumulate (Released on 29 Jan 2023) at no additional cost!
To know more about our Special Report - 5 Hidden Gems to Buy / Accumulate, click here!
In case of any queries or doubt, do not hesitate to write back to us.
Wish you happy & safe Investing!
Regards,
Team - Saral Gyan
