Aashish Tater picks Cosco India and BOC India

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Aashish Tater picks Cosco India and BOC India

Aashish Tater, head-financial research, Fort Share Broking, joins CNBC-TV18 to cherry pick his favorite stocks for the season that he is confident will return well over time.

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Aashish Tater, head-financial research, Fort Share Broking, joins CNBC-TV18 to cherry pick his favorite stocks for the season that he is confident will return well over time.

He recommends buying Cosco India and BOC India.

On Cosco India

Entrepreneurs have been looking out to crossing over to a all new level, and sports is the right arena now. Historically a sport fanatic country, the only sport that actually unites the entire nation is cricket. However, it is recently observed that loyalty is shifting from the gentleman's game into other sports such as tennis, basketball and football. Studies on the growth of sports in the US and UK reveal that interest in these sports will only go up in India from here on.

Cosco India, being a player in the sports business, is poised to take advantage of this exact shift in consumer interest.

From a financial perspective, the company had posted Rs 70 crore bottomline last year and is well capable of hiking it to Rs 82 crore this fiscal. Valuation-wise, the stock definitely does not warrant a re-rating right now in terms of PE multiple because it's already trading at a comfortable 22-23 times.

The market-cap to sales ratio for the company is available at Rs 20 crore. The promoter owns 75% odd stake in Cosco. The company has got tremendous potential since at least three proposals pointed to the fact that when fit into the models for sports, sports bar and training institutions for sports, there is every chance of it definitely get replicated in terms of lifestyle.

Investors should be ready to catch any fall in the stock, though, here is hardly anything to loose even from current levels. Do not hurry into the stock, but from a longer-term perspective of five to seven years, this can be one story which can be a multi-bagger.

On BOC India

This is a stock that you must invest in like an Indian and take a call on like a foreign investor. Trading at 17 times PE, it is fairly valued at current price of Rs 270. We have estimated an earnings per share of Rs 14 for this fiscal for BOC India.

What is to be noted about BOC is that it is a candidate for delisting. Calculations put the value of the stock at Rs 384-392 on the high side and at Rs 340 on the lower, at the time of delisting.

So, from every perspective, this stock is bound to return well. Buy at every dip, but the stock will also return if bought at current levels since there is only an upside seen to it now.