Tega Industries Ltd - Steady Growth Incoming?

A quick dive into the world's second-largest producer of polymer mill-liners

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Now let us take a look at our stock pick for this week - Tega Industries Ltd.

As you can see from the above, the company has excellent fundamentals. However, it’s also moderately expensive when it comes to PE and PB multiples. This is mainly due to the euphoria prevalent in the markets right now after the stunning BJP victories in 3 out of 4 states that went to polls. We see a steady rally in Indian markets up to mid-2024 as FIIs start buying and discount a Modi victory in the General Elections.

Though our price target is aimed for end of FY24, we strongly believe that Tega is a company that has a long runway, especially because of the prudent management, zero-debt levels and also as they are not affected by the cyclicality of the mining industry.

They are also using their cash reserves to acquire distressed companies at very cheap valuations, and then planning to turn them around with their expert human resources and track record of more than three decades in the mining industry domain.

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Disclaimer: This article is for informational purposes only. Please consult your certified financial advisor before investing in any security.