This small cap stock will double your money! Brokerage house said, buy this share

GMM Pfaudler Share Price: The mood of the stock market has deteriorated with the beginning of the new year. Foreign investors are selling. There is no stock in the stock market which has not been affected by the storm of this fall. In such a situation, investors are looking for such stocks whose valuation is attractive, there is less possibility of decline and which will also give strong returns in the coming days. Ambit Capital Private Limited has found one such stock for investors whose name is GMM Pfaudler. The brokerage house believes that this stock has the potential to give investors almost double returns from the current level.

Ambit Capital Private Limited has released its coverage report regarding the stock of GMM Pfaudler. The brokerage house has advised investors to buy the stock of GMM Pfaudler for a target price of Rs 2300. In the last trading session the company’s stock closed at Rs 1222.75. According to Ambit Capital, GMM Pfaudler shares can give investors returns of 89 percent i.e. close to double in the next 24 months from its current level. The market cap of GMM Pfaudler with a face value of Rs 2 is around Rs 5498 crore and the book value of the stock is Rs 152.42.

Ambit Capital said in its coverage report, GMM Pfaudler is among the global leaders in the glass-lined equipment industry which is used in the pharma and chemicals industry. GMM Pfaudler is a multinational company with approximately 20 global manufacturing facilities across four continents. The company’s business in India saw revenue growth of 25 percent annually between FY 16 to 23 due to the boom in the chemical and pharma sectors, but the growth slowed down after FY 2023-24. According to Ambit Capital, GMM Pfaudler will benefit from the increase in capital expenditure in the pharma-chemical sector.

Despite the spectacular rise in the stock market in the last three years, GMM Pfaudler’s stock has disappointed investors. The company has given a negative return of -20 percent in one year and a negative return of -28 percent in 3 years. But Ambit Capital is bullish on the company and believes that the good days of GMM Pfaudler are about to return.

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