Analysts see up to 45% upside in this smallcap on rising oxygen demand; should you buy?
Shares of the company climbed 18% to Rs 108.65 on April 20 at around 2.53 pm (IST). On the other hand, the benchmark BSE Sensex was down 409 points, or 0.81%, to 47562 at around the same time.
Everest Kanto Cylinders | Oxygen cylinders | Oxygen shortage: Analysts on Dalal Street see up to 45% upside in Everest Kanto Cylinders amid rising demand for oxygen. Established in 1978, the company is engaged in the business of manufacturing industrial, CNG cylinders and medical cylinder for oxygen.
Shares of the company climbed 18% to Rs 108.65 on April 20 at around 2.53 pm (IST). On the other hand, the benchmark BSE Sensex was down 409 points, or 0.81%, to 47562 at around the same time.
Amid rising demand for oxygen, Rahul Sharma of Equity99 believes that Everest Kanto Cylinders can touch Rs 150-160 in the next 6-8 months. “The company manufactures steel gas cylinders which are mostly used for oxygen. Investors can buy some stocks on dips.”
On the other hand, Dhaval P Vyas of Dhaval P Vyas Investment Research also advised investors to ‘Buy’ the stock with a price target of Rs 145-149 in the next two months. However, he believes that the stock can hit Rs 125 in the near-term.
Promoters held 67.39% stake in the company as of March 31, 2021, while the public held 32.61%. At present, the market capitalisation of the company stands at around Rs 1,242 crore.
On the issue of the supply of medical oxygen, Prime Minister Narendra Modi directed that the installation of approved medical oxygen plants should be sped up.
According to the statement, 162 PSA oxygen plants are being installed in 32 states and UTs from the PM CARES fund.
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