Multibagger Manish Goel Stock: Shares of Suryalatha Spinning Mills Limited is one of the multibagger stocks that the Indian stock market has produced in the last one month. This stock of Manish Goyal has gained momentum from all sides. from 300 620, is giving more than 100 per cent return to its shareholders during this period. However, value investor Manish Goyal believes that the BSE listed small-cap stock has plenty of steam left in it despite doubling shareholders’ money in the last one month.
Giving a ‘Buy’ tag to this multibagger stock, MD & CEO of Multibagger Securities Research & Advisory posted on his blog manishgoelstocks.com, “If the management quality and integrity is questionable or sub-standard then all other strengths of the stock are worthless . about now Suryalatha Spinning Mills Ltd., there are many financial ratios etc. which prove the quality of management but one unique thing which impressed me was that its promoters/management were paying dividend to public shareholders but they were waiving off their dividend..! ! In how many listed companies do you find that the promoters/management are working more for the public shareholders than for themselves. I really liked their act of paying dividends only to public shareholders.”
Does the fair value of the stock indicate more bullishness?
“All the financial ratios are very good and continuously improving. According to (Benjamin) Graham’s source, the fair value of Suryalatha Spinning Mills share is coming as 1,167 per share,” wrote Manish Goel regarding the outlook for this multibagger small-cap stock.
Suryalatha Spinning Mills share price today 620 each, that means Benjamin Graham’s formula suggests that the small-cap multibagger stock has the potential to double from current levels in the sell-off.
On fundamentals that may continue to support rally in Suryalatha Spinning Mills shares, Manish Goyal wrote, “Indian textile exports to get a boost, due to USA ban on China’s Xinjiang cotton. Known as the center and it is affected by .earthquake.So Indian mills are getting more business inquiries from Turkey as well as European countries.
Expecting margin gains for the company from the reduction in cotton prices, Manish Goyal wrote, “Cotton prices are down 40% from the peak. Cotton prices are raw material for spinning companies and low cotton prices are good for are. value investor gone. to add that China + 1 Policy to benefit Indian spinning companies including Suryalatha Spinning Mills.
Boost from Sri Lanka, Pakistan economic crisis
“Unstable political scenario in Sri Lanka and Pakistan, and wage issues in Bangladesh will shift export demand from these economies to apparel players in India. These 3 countries control more than 7% of the global export pie,” Manish Goyal Said, “With the Free Trade Agreement (FTA) AustraliaUAE and UK, which allow duty free entry of up to 90% of India’s exports to these countries, will improve India’s position in global markets.”
This multibagger small-cap stock is available for trade bse and its current market cap is around 264 crores. After almost a year of session, its current trading volume is over 27,000, which is higher than its last 20 days average volume of 25,223. This means that the small cap stocks have registered a boom in the trading volumes in the recent sessions. This is a 52 week high 635 while it has a low of 52 weeks 272.40 per share.
Disclaimer: The views and recommendations given 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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