powerfulpicks short term and long term buy call: Vimal Oils and Foods - Buy at 63.5 for a short term target of 72 and a long term target of 86 (+35%).
Going by market cap, this company (VIMAL group flagship) is one of the largest listed companies in edible oil sector, but it is a bit under-valued. Wide range of products include soyabean oil, mustard oil, cottonseed oil, groundnut oil, Sunflower oil and Corn oil. Wide network of 1500 distributors and 50 depots for storage. Presence in 21 states, over 4.5 lacs retail outlets endorse its products. Company regularly invests in ad campaigns in different forms and sells products under 2 brand names 'VIMAL' and 'LIPI' .
Interestingly, it has recently entered into Table Margarine and calls its products 'VImal Lite'. Everyone knows what happened to Zydus Wellness, after I had recommended it. The stock just flew. Reason being that companies in the edible oil and food space are going through a re-rating at present. I had also recently recomended JVL Agro (in this same segment) recently and the stock is doing very well.
Vimal did well last year, but is doing better this year. Recently, the news is that the company issued 70 lac shares on pref.basis to the promoters. This shows confidence of the promoters in the company and this fund is planned to be used to launch more value-added and unique products and expand the distribution and marketing network. The company also just announced a dividend of 1.5 Rs per share. Which looks quite good to me.
All together, this is a RESPONSIBLE company, well managed and in good hands. At the price of 62-63, investment has lesser risk than many other over-priced counters at present. Can be bought and held for 1 year.
DISCLAIMER: I do not own this stock, but I may pick this up today morning after I recommended to you.
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