Noted investment advisory firm, Dynamic Levels has suggested buying the stock of Igarashi Motors in its recent research report, with a good opportunity to make money in the slightly longer term.
Igarashi Motors specializes in the design and manufacture of small, permanent magnet DC motors and gear motors. Here are 8 reasons why the stock is being recommended.
Solid jump in net profits and margins
Igarashi Motors saw a huge jump in net profits of 30.01% for 2015-16 from Rs. 48.95 crore to Rs. 63.64 crore.
The company also had a solid operating profit margin of 19.78% for FY15-16.
Good buying support from institutions
According to Dynamic Levels, domestic institutions are gradually attracted towards the company.
Igarshi Motors also has very less debt to equity ratio of 0.17 and good interest coverage ratio of 16.75.
Increasing global presence
Igarashi has developed developed an international presence to provide its quality product and services worldwide.
This is likely to boost exports of the company.
High market capitalization
According to the Dynamic Levels research report Igarashi has the highest market capitalization among its peers of 2094 crores.
This allows institutions and high networth individuals to buy into the stock.
Share price outperforms benchmark indices
The company has had strong share price performance post budget. The stock price has risen by 73.12% from 28th Feb 2016.
This has outperformed the benchmark indices.
Positive cash flow from operations
The company is also seeing a continuous increasing positive cash flow from operating activities. Igarshi Motors has very less interest outgo which has further lowered down in 2015-16.
Target price of Rs 775
The current market price of Igarashi is Rs 665. Dynamic Levels has set a price target of Rs 775 on the stock.
The article is sourced from the research report of Dynamic Levels with due permission.
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