Upper Circuit Stock: Nikhil Bhatt Recommends To Buy Akshar Spintex For 80% Upside; Here’s Why

On Monday, the shares of Akshar Spintex ended on the BSE at a 5% upper circuit of Rs 6.68 apiece. The stock has gained 13.37% YTD but analyst Nikhil Bhatt sees an 80% potential upside on the stock by keeping a target price of Rs 9/12. The analyst has recommended to buy the stock at the current market price and maintaining a stop-loss of Rs 5 per share.

The company Akshar Spintex manufactures cotton yarn. The company produces carded, semi-combed, and combed yarn made entirely of cotton. The company's production plant is located in the fertile cotton-growing regions of Gujarat, close to Kalavad of Rajkot District of Gujarat state. It has an area of 183437 square feet. Ashok Bhalala, Amit Gadhiya, Harikrishna Chauhan, and Rekhaben Chauhan are the company's promoters.

By 7.97 Cr, the company's debt has been substantially decreased. The company has grown revenue each quarter over the previous four quarters while having zero promoter pledge. With an effective Cash Conversion Cycle of 42.77 days and strong cash flow management, the company's CFO/PAT ratio is 17.50. With an average operating leverage of 88.76, the firm exhibits a high level of operating leverage.

Akshar Spintex has a market cap of Rs 159 Cr and the shares are currently trading at a P/E of 27.79 and P/B of 3.73. The company have setup facility of 2,20,000 square feets & we believe that quality products are not only by promises but also by proven results, said the analyst Nikhil Bhatt.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.