In chat with Anil Singhvi, Sandeep Jain picks Ingersoll Rand; know why he is bullish on this stock

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In today’s edition of ‘Jain Sahab Ke Gems’, market analyst Sandeep Jain, while speaking to Zee Business Managing Editor Anil Singhvi, revealed a great strategic tool for investors. Jain said that investors should look for stocks that are 20-25 per cent behind their targets and analyse the risk-to-reward ratios. He said that he was confident that the stocks will earn high returns. Today, he recommended a stock that he said has potential to give high returns to the investors. The stock he picked today is Ingersoll Rand and here is why? 

Top Stocks To Buy: Ingersoll Rand 

Jain recommended Ingersoll Rand as a long term buy, calling it an excellent stock. The company manufactures air compressors. He said that even when the markets were down significantly, this stock did not go below Rs 555. This is the low in over a one-year period. The downside risks are very low, the analyst said. The upside is over Rs 700.  

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Many of the products made by Ingersoll Rand are unique and they are doing very well, Jain further said. 

The fundamentals of Ingersoll Rand stock are very strong. This stock is currently trading at a PE multiple of 29-30. It is a zero-debt company. This multi-national company has good margins around 11-12 per cent. The Ingersoll Rand return on capital is around 29-30 per cent. The profits have been growing at 9-10 per cent over the last 5 years. The September quarter results were good.   

Ingersoll Rand stock is currently trading around RS 680. 

He reiterated that the investors should invest in Ingersoll Rand stock as the downside risks were low. The upside prospects are good and it is consolidating around its highs. 

Ingersoll Rand promoters have more than 75 per cent holding in the company. He puts Ingersoll Rand target price at Rs 750. The second target price is Rs 790.