Graphite India Ltd (NSE: GRAPHITE) (CMP: Rs.801) Share Market Tip: Can be considered
Valuation: Stock is undervalued with training PE of 18.05x
Reasons to consider: The company has reduced its debt and now it can be considered as a virtually debt free company. The company has been maintaining a healthy dividend payout ratio as well. The company has improved realization and higher capacity utilization. Stock is in circuit now but can be considered after it will start trading normally.
Financials: Numbers are improving with healthy profit margins. Company has outperformed market by posting seven-fold jump in its net profit. The growth is driven by a combination of higher volumes, price realization and capacity utilization which is increased from 74% to 85% y-o-y.