Mudar Patheryas top stock picks in volatile markets

In an interview with CNBC-TV18, investment advisor Mudar Patherya, spoke about his reading of the market and his top stock picks.
  • Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead Realasset
moneycontrol.com

Home » News » Markets » MARKET OUTLOOK

May 28, 2010, 10.53 AM | Source: CNBC-TV18

Mudar Patherya's top stock picks in volatile markets

In an interview with CNBC-TV18, investment advisor Mudar Patherya, spoke about his reading of the market and his top stock picks.

Like this story, share it with millions of investors on M3

Mudar Patheryas top stock picks in volatile markets

In an interview with CNBC-TV18, investment advisor Mudar Patherya, spoke about his reading of the market and his top stock picks.

Post Your Comments

Share Cancel

Mudar Patherya (more)

Promoter & CPO, Trisys Communications | Capital Expertise: Equity - Fundamental

In an interview with CNBC-TV18, investment advisor Mudar Patherya, spoke about his reading of the markets and his top stock picks.

Below is a verbatim transcript of the interview. Also watch the video.

Q: Whatís the story in Orient Ceramics ?

A: It is remarkably under priced and at the same time I would say huge increase in earnings in the last quarter. I have done a bit of calculation and my safety buffer at the time of volatile markets is whether itís closely priced relative to its EBITDA earnings. I would say that market share for Orient Ceramics is about Rs 60 crores and that my indications show that if everything goes right I think they should report on EBITDA of Rs 50 crores for 2010-2011. Thatís really fairly safe at a time when capacities also are going on within the company. So, you are looking at an earnings momentum, which gong is to be pretty positive over the perceivable future.

Q: That sounds strange Rs 60 crore market cap for Rs 50 crore EBITDAóany problems in the past?

A: It happens. The ceramic tiles industry is something that most investors looked at with a fair amount of suspicionóI think thatís over. If you look at the last quarter results of Somani, Kajaria and Orientóit indicates that this sector has actually posted vigorous rebound on the strength of infrastructure growth, strong residential use, more office creations in the country, etc and itís just that the cycle has caught up and finally they are doing very well.

Q: Why do you like Andhra Pradesh Paper Mills ?

A: This stock is actually selling less than I think the projected EBITDA for 2010-2011. The way I have understood the company is that they had about 1,70,000 odd tonnes capacity. They have added about 67,000 tons in the last one week so effectively itís a 2,40,000 tonnes per annum company now and they are reporting a margin of nearly of about 32%. Top line for current year I would be surprised if it is not Rs 1000 crores. So if it is a about Rs 1000 crores you are looking at one-third of that going straight into EBITDA. So I am looking at an EBITDA of close to over Rs 300 crores. The market cap is about RS 270-280 crores or maybe maximum Rs 300 crores at the moment.

So itís quite crazy that when a company or rather a sector turns around you start identifying the biggest bargains. This is the very attractive bargain because the expansion has already gone on stream. They are integrated, and itís got high margins, and the integration is already reflecting in your high margins. Plus itís not an Rs 5-10 crore profit play its going to be a significant profit play. Gradually, there will be a huge turn on sentiments for a pretty well waited industry and AP Mills is going to be one of those companies that is going to lead this entire turnaround in paper stocks in the market.

1 2

Ads by Google

Buy, Hold, Sell ? Hear it first on M3
Mudar Patheryas top stock picks in volatile markets

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login