Check out Vikas Sethi's handpicked stocks

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Check out Vikas Sethi's handpicked stocks

In an interview with CNBC-TV 18, Vikas Sethi, Managing Director of Sethi Finmart Financial Ltd advices investors to buy into OnMobile Global and ESS DEE Aluminium.

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Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » ALSO READ See what other experts are saying about markets See what FIIs are saying about the markets See what Udayan Mukherjee is saying about the markets OnMobile Global BSE | NSE 30/05/12 Are Mutual Funds betting on OnMobile Global? Other Stocks in this news ESS DEE Aluminium |

In an interview with CNBC-TV 18, Vikas Sethi, Managing Director of Sethi Finmart Financial Ltd advices investors to buy into  OnMobile Global and ESS DEE Aluminium .

OnMobile Global

This company is the leading provider of value added services and its customers include all the major telecom companies in the country. Its agreement with Telefonica of Spain recently had enabled the company to enter the lucrative Latin American markets like Mexico, Brazil and Argentina where the ARPUs (Average Revenue Per User) are better than India and has acted as a cushion in case of falling revenues from Indian operations. The company also recently acquired the recent US based Dilithium Networks which is a leader in mobile video technology. Sethi sees significant growth of opportunities here.

Sethi also sees the company's revenues and profits growing substantially in the coming years because of the pan India launch of 3G services by all the media telecom companies in the country.

As far as the financials are concerned, the March quarter results were not that great mainly due to slowdown in Europe and other such regions. Sethi expects the company to report an EPS of Rs 10 for FY12 on the expanded equity after the recent bonus issue of 1:1. So at the current market price, the stock trades at about 11 times which is attractive.

Hence, Sethi maintains a buy recommendation on the stock with target price of Rs 150 in about 12 months.

ESS DEE Aluminium

This company is a leader in packaging solutions, especially aluminium packaging, and mainly caters to pharma, FMCG and food sector. Looking at the fourth qurater results at a standalone view, the company did not perform very well. But a comprehenseive view of the compnay's FY11 results shows that the results were extremely positive. 

The company's revenues went up by more than 20% from Rs 580 crore to Rs 688 crore and net profit went up from Rs 45 crore to Rs 118 crore. Sethi thinks that the company would continue to grow at a steady rate in the coming years.

The company which reported an EPS of Rs 37 for FY11 is expected do an EPS of Rs 46 for FY12. So at the current market price, after the recent crash, the stock is trading at just about 7.5 times FY12 earnings.

Sethi sees the stock doing well in the coming quarters and maintains a target price of Rs 550 in about 12 months.

Disclosures: It is safe to assume that Vikas Sethi and his clients would have interest in the stocks which have been discussed.