Out March 2018 stock recommendation is a packaged food company which is trading at reasonable valuations. The company has got high market share in its segment both in India and in export market. As the company operates in packaged food segment, one can remain invested for very long duration with out the worry of any disruptions due to technological changes.
March 2018 Recommendation: Company with a consumer brand and high market share in its segment
Salient features of March 2018 WealthBuilder Recommendation
1. The company has successfully built a consumer brand in its area of operations and this has led to high market share in its segment.
2. The company is very comfortable in terms of financial health with very low levels of debt compared to other companies in the same segment.
3. The sales of the company has been growing consistently at the rate of more than 13% over the last 10 years. The profits are growing at a much higher rate.
4. The operating profit margins are much higher than the peer companies in its segment. This indicates some pricing power with the company for its products.
6. The valuations at which the company is trading provides good comfort. The stock is very reasonably valued when compared to the other consumer oriented stocks.
7. The company operates in a sector which is poised to grow continuously for several years. The company is in a sweet spot to capture this growth.
SEBI Registered Investment Advisory