In a chat with Anil Singhvi, Vikas Sethi picks THESE 2 stocks for huge gains – Check target levels here

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In a conversation with Zee Business Managing Editor Anil Singhvi, the market analyst Vikas Sethi picks two stocks from the paper and metal segment for bumper gains in short term. He suggests investors to Buy West Coast Paper and SAIL while pointing out the reasons for their growth. 

West Coast Paper 

Mentioning that the paper stocks are in focus, lately. Sethi said, West Coast Paper is a fundamentally strong company with an operating profit margin of 19 per cent annually, return on equity at 26 per cent, debt-equity ratio at 0.45 per cent and last three year’s profit CAGR (compound annual growth rate) has been spectacular. 

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Meanwhile, the government has also increased paper use by banning single-use plastic in operation, moreover, there has also been a surge in the paper packaging in the e-commerce sector, which was quite visible in the JK Paper’s quarter four results, the market analyst points out. 

He added, Institutional investors such as Nippon Life, L&T, GIC have combine holding of around 13 per cent, similarly, promoters hold around 56 per cent of the company. The analyst also expects spectacular Q4 results for West Coast Paper 

Sethi sets a target of Rs 250 with a stop-loss of Rs 225 per share, the stock on Wednesday ended over one and a half per cent higher to Rs 230 per share. 

SAIL 

With an F&O ban (Future and Opinion) on SAIL today, it is expected the stock would grow in the cash market on the back of strong fundamentals, expect Sethi. He suggests, the metal stocks declined least despite the overall fall in the markets today, he further said, the metal space is underperforming within the sector, SAIL is the most underperformed stock, as it being in the F&O ban list. 

The analyst also said, the steel sector has been in focus on the back of news that China to levy 10-15 per cent export tax on steel, which will certainly help the metal companies in India. SAIL had reported Rs 1283 crore profit in the December-ended quarter and its Q4 results are expected tomorrow. 

Sethi sets a target of Rs 135 per share for SAIL with a stop-loss of Rs 118 per share, the stock on Wednesday ended around three per cent higher to Rs 124 per share.