Stock to buy today: Profitmart sees 35% upside in Anmol India shares despite 115% rally in YTD
Stock to buy today: Anmol India shares are one of the multibagger stocks that Indian stock market has delivered in 2023. In YTD time, this Coal & Metallurgical Coke Supplier and Importer company’s stock has risen from around ₹30 to ₹64.25 apiece levels on BSE. delivering near 115% return to its shareholders in this time. However, it seems that Profitmart Securities is expecting more upside in this commodity stock.
As per the research report published by Profitmart Securities, Anmol India shares may touch ₹87 per share levels in long term. Anmol India share price today is ₹64.25 apiece, which means the brokerage is expecting 35% per cent upside in this small-cap stock.
On why Anmol India shares may give big upside further, Profitmart Securities said, “Currently Anmol commands a sizeable share of the USA coal market in India with its sales operations covering almost a half of the country. The company specialises in supplying high GCV coal, USA coal, Indonesian coal, Saudi pet coke and USA pet coke. All products supplied by the company are quality-tested by an independent body.”
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The brokerage went on to add that promoters of the company hold an extensive industry experience. Long standing in the market has helped the company in building strong business relationships with its clients and suppliers. Anmol has a strong and increasing customer base in Gujarat, Punjab, Haryana, Himachal Pradesh, Uttar Pradesh, Uttarakhand, Chandigarh etc.
Anmol India financials
On financials of Anmol India shares, PRofitmart Securities said, “Anmol has delivered strong numbers in H1 of FY24 as normally the H2 of every year is always a much stronger business period for the company. The only drag in performance has been a flatish topline in H1 FY24 buyt operational performance in terms of operating profits is good with operating EBIDTA up by 41% YoY with PAT at ₹12.53 crs in H1 of FY24 as compared to ₹10.09 crs in H1 last year – up by 24% YoY. However interest cost was up by 127% Yoy to ₹8.84 crs vs ₹3.89 crs in H1 last year largely due to high working capital requirements.”
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“We expect a significantly strong H2FY24 going ahead. The Anmol management is also confident and positive on demand prospects for its business in the medium term as robust industrial growth and rise in power consumption will drive demand for coal in India & where consumption is expected to grow at consistent rate of 8-10% every year as the runway for growth is huge ahead over the next 5 to 10 years ahead,” brokerage said.
Company’s business model
On Anmol India’s business model and its build-up, Profitmart Securities said, “Anmol’s business model is built around its proprietary technology platform, which the company leverages to grow the business. A part of Anmol’s technology suite, the coal platform is connected with the company’s proprietary CRM system and enables instant communication with clients through a built-in broadcast feature.”
On strong points of company’s fundamentals, Profitmart report said, “Anmol follows a strict policy of rotation of stock and does not involve in speculation or holding of inventory with average inventory of 20-25 days. Almost 60% of stocks are sold at the time of procurement while the balance 40% is kept for sales to small traders and direct manufactures,” adding, “A key focus area for Anmol is optimizing its procurement. It procures imported coal directly from suppliers in the international markets. The procurement quantity is decided based on predictions from the business intelligence that management receives from both in-house and external sources.”
Anmol India share price target
On suggetion to investors in regard to this multibagger stock, Profitmart Securities report said that the stock may go up to ₹87 apiece levels maintining uptrend further.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decision.
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Published: 13 Dec 2023, 12:54 PM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.