The stock market is a platform of opportunities and risks where even expert predictions often prove inaccurate, while ordinary investors, with simple understanding and patience, can achieve significant profits.
New Delhi: When discussing stocks that offer reliable and b returns in the stock market, certain names consistently garner significant investor attention. One such name is SJS Enterprises Limited. Over the past two years, this company has delivered impressive returns to investors, and now this stock appears poised for another period of rapid growth.
A 120% Jump in Just Two Years
Over the past two years, SJS Enterprises' shares have yielded approximately a 120% return for investors. This means that an investment of ₹100,000 two years ago would be worth approximately ₹220,000 today. This stock has thus proven itself a multibagger.
Recent Strength in the Past Month
Recently, this stock has surprised the market with its performance. In the last month alone, the stock price has seen a surge of approximately 11%. This growth is attributed to the company's b financial position, strategic decisions, and potential expansion plans.
Market Focus on Future Growth
Financial experts and brokerage houses believe that SJS Enterprises has b potential for significant future growth. It is estimated that the company's revenue will grow at a Compound Annual Growth Rate (CAGR) of 17.5% from fiscal year 2024-25 to 2028. Meanwhile, the company's profits are expected to increase at a rate of approximately 20.1%, which is highly encouraging for investors.
Alara Securities' Opinion
Brokerage firm Alara Securities has expressed its confidence in SJS, giving it a 'buy' rating. The firm states that the company's strategic acquisition policy and b market position will ensure continued b returns in the long term. Alara has set a target price of ₹1710, significantly higher than the current price.
Growing Foothold in the Digital and Auto Sectors
SJS Enterprises primarily manufactures products such as decals, chrome, and optical interfaces, which are mainly used in the automobile, consumer electronics, and appliance sectors. Increasing demand and technological advancements in these sectors are leading to a continuous inflow of new orders for the company. This is why an increase in the company's market share and profits is considered certain in the coming years.
Future Plans and Investment Strategy
The company is also rapidly expanding its production capacity. According to reports, the company is planning to invest approximately ₹160 crore in capital expenditure during fiscal year 2026. The aim of this investment is to establish new production units and upgrade existing infrastructure. This will further strengthen the company's competitive position.
Strong Financial Indicators
Regarding SJS's fundamental analysis, brokerage houses estimate that the company's Return on Capital Employed (ROCE) could reach 23.5% by fiscal year 2028. Meanwhile, the Return on Equity (ROE) is expected to be 19.4%. These figures reflect the company's efficient management, revenue generation, and profitability.
A Golden Opportunity for Small Investors
Small investors in the stock market often feel uncertain about where to invest and which companies to trust. A stock like SJS Enterprises can serve as an excellent example for such investors. This stock offers both a sense of stability and the potential to become a multibagger.
Points to Consider Before Investing
While SJS's growth and performance make investment tempting, investors should remember that the stock market is inherently volatile. Therefore, thoroughly analyzing any stock before investing is crucial. Always consult a financial advisor and maintain a diversified portfolio.
