Adhunik Metaliks provides good investment opportunity

Beta: 0.75
Institutional Holding: 20.9%
Dividend Yield: 0.9%
P/E: 11.5
M-Cap: Rs 1,000 cr
CMP: Rs 109.5

The global bull run in commodities has pushed up the prices of metals, especially steel, to historic highs. Mining and metal companies across the globe have raised their capacities to benefit from this boom cycle. This has put the smaller players with a diversified product portfolio in a sweet spot. This is because during a bull run, they reap the benefits of faster demand growth, while in a downturn, they are better protected.

Adhunik Metaliks (AML) is one such company with products ranging from sponge iron, steel billets and ferro-alloy, to mining materials like iron and manganese ore. It has embarked upon organic as well as inorganic growth paths to expand its product portfolio. The company provides a good investment opportunity for medium-term investors with a horizon of 3-4 years.