Check out: Aashish Tater's 2 must-have stocks

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Aashish Tater, head of research, Fort Share Broking picks Archies and Vesuvius as multibagger stock ideas for the day. He recommends investors to buy these stocks as they have the potential to perform well going ahead.

"Archies controls 60% of the expression market. The joint venture (JV) with Hallmark will be a booster for the stock. One can expects returns of around 20-25% (Y-o-Y) if one holds from three-four years perspective."

"Vesuvirus is a proxy story like Alfa Laval . The stock is a definite buy on dips because it is an MNC company and it has well known parent company. The stock is portfolio bet one can accumulate at dips. The stock has limited downside."

Below is the edited transcript of Tater's interview with CNBC-TV18.

On Archies

We have been pushing for Archies for quite some time now. There is a lot of theme that is going into the retail and consumption space. Archies with this particular criterion controls almost 60% of expression market. Last year it said that it is going to enter in JV with Hallmark.

Archies would be managing stores for Hallmark in India. This means two counter parties which are rivals are going to befriend in India. This will definitely be a booster for Archies.

Taking a call from Hallmark's perspective, they have exclusive rights for Garfield and Snoopy which is very popular amongst kids. They have a market cap of just Rs 140 crore.

They own 195 exclusive outlets and 300 franchises across 14 states. From market cap to franchisee ratio perspective, it seems to be grossly under valued. If one has the potential to hold this stock for next three-four years, he can definitely expect 20-25% returns year on year on Archies.

Their Q1 number has been a gradual increase year on year because of their expansion. I am not considering their bottom line which will be somewhere around at Rs 10-12 crore mark for this year. 

This would be almost 13-14 times in terms of PE multiple. This is one candidate that has got rerating chance in PE terms because of its solid business growth and presence across India. This is definitely a buy from our side.

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On Vesuvius India

Vesuvius India is just a proxy story like Alfa laval. Vesuvius India has been one of my top picks from 2009 when it used to hover around Rs 100. The reason was, the annualise equivalent value that parent pays to acquire companies across the globe was much higher than what the company was available at. That means even going forward there is lot of potential.

There has been a fundamental development for this company. Its parent Cookson may shutdown their operations in France and other places. That business is going to flow into Poland, Czech Republic, China and India. Cookson is one of the premier players in the refractory segment.

The refractory business for the domestic counter part is going through tough times but still they have managed a growth of 30% on top line and 40% on bottom line Y-o-Y.

The company would be doing Rs 570-580 crore for this fiscal in terms of top line. They have been consistently posting 10% profit margin for the last three-four years and they would be doing the same. Their total profit would be Rs 58 crore and EPS close to Rs 30.

From Rs 30 at a price that is currently at Rs 375, is a definite buy because it is an MNC stock available at 11-12 times. It has the potential to get more orders from abroad because of its parent's connection. The parent is trying to shift for better arbiters in terms of cost efficiencies to places like India, China and Poland. There are lots of things that need to be looked down from three-four years perspective.

These are portfolio bets and should be accumulated on every dip and even at current levels. One should look at this kind of a stock from a longer time frame because from Rs 100 stock it became Rs 375 in two years. In the next three-four years if the parent shifts operations again in these subsidiaries they might end up doing an EPS of Rs 50-55 from next three years perspective.

This is a thumb rule for MNC stocks, whenever there are rumours about delisting the stock tests PE multiple of 18-20 times. I am not looking from perspective of delisting because the parent holds just 55%. This is a clear cut multi bagger. Looking at its current potential, the stock has limited downside with a potential upside of 200% from three-four years perspective.

Disclosure: It is safe to assume vested interest at firm wide level but no personal holding in the stocks discussed.