In a special edition of SIP Stock: Strong Investment Portfolio, Zee Business Managing Editor and Market Guru Anil Singhvi pointed out four strong points as a reason to Buy shares of Kalyani group promoted infrastructure company BF Utilities for the bumper returns at cheap valuations.
While decoding the internals of the company, Zee Business Research Analyst Ashish Chaturvedi in a conversation with Singhvi said, BF Utilities is a Bharat Forge’s infrastructure arm, which has celebrity investor Radha Kishan Damani’s investment of 1.30 per cent stake in the company.
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The company has a great growth track record in the last 10 years, says Chaturvedi, mentioning that it has revenue compound annual growth rate (CAGR) at 29 per cent and good recovery month-on-month basis, especially since third-quarter of the financial year 2020-2021.
Being an infrastructure and realty related company, BF Utilities will have direct benefit from the union government’s infrastructure push in the country, lately, points out the research analyst.
BF Utilities में आने वाले समय में मिलेंगे बेहतर रिटर्न्स
दमदार फंडामेंटल वाला बेहद सस्ता शेयर
जानिए अनिल सिंघवी को क्यों पसंद आया BF Utilities?
— Zee Business (@ZeeBusiness) June 17, 2021
The biggest reason being selected under SIP Stock is its land bank, says Chaturvedi. He adds, the BF Utilities has a large amount of land that is around 2000 acre in Karnataka, of which 7000 is under conflict with the state government.
The research analyst says, the value of this land bank is significant and high, as undisputed 13000 acres’ value is at Rs 1500-2000 per share, which will bore spectacular returns going forward.
In this regard, Singhvi says, a Bharat Forge group company in real estate and infra business has strong promoters, moreover, impressive growth trajectory, land bank value, and cheap shares in terms of valuations make this company lucrative and would give bumper returns in the coming days.
The market guru sets a target of Rs 650 per share in a short to mid-term view, while the price will be double in a long-term view by Rs 800-850 per share. He adds, the company book shows debt against strong and huge NVA.
On technical terms, the market analyst Rajesh Palviya says, there has been a breakout in the stock on a long-term basis as per monthly charts, while there is a good recovery on the lower side.
The analyst says, if BF Utilities stays above Rs 385-390 per share, then it will touch Rs 550-600 per share target in the short to mid-term view. He added, the stock’s weekly setup is quite positive and has established a breakout, which could have continuity for the next 2-3 weeks.