Stks to get into post railway Budget

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Stks to get into post railway Budget

Harit Shah of Angel Broking pick his top midcaps in Bartronics India, Infotech Enterprises and Cranes Software, reports CNBC-TV18. He has price target of Rs 364 on Bartronic, which has a pre-eminent position in the AIDC market and set up the first-ever smart card manufacturing unit in the country.

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Excerpts from Closing Bell 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 Nifty BSE | NSE 29/05/12 Are Mutual Funds betting on Nifty? Other Stocks in this news Cranes Software International | Infotech Enterprises |

Harit Shah of Angel Broking pick his top midcaps in Bartronics India , Infotech Enterprises and Cranes Software .

He has price target of Rs 364 on Bartronic, which has a pre-eminent position in the AIDC market and set up the first-ever smart card manufacturing unit in the country.

Excerpts from CNBC-TV18's exclusive interview with Harit Shah:

Q: Let's start off with Bartronics, because it's been too much talk about the potential beneficiary or what's come out of the railway Budget?

A: The company is basically present in the RFID space, which has a significant amount of growth. Going forward, the adoption of RFID in the industry of course is pretty low, so with the retail industry expected to grow at a fast rate, this company has a premier positioning in the sector. So that's one area where it is expected to grow at a fast rate and on the other side they have also gone through the smart cards business, a chip that can be used for multiple purposes like national ID cards, credit cards, debit cards also. In fact it's the only smart-card manufacturer in the country, so that's another area where it is expected to result in pretty significant growth.

In the next two-three years, we are expecting the company to record almost about 100% growth in topline and bottomline, so that should translate into pretty strong returns going forward.

Q: Is it just co-incidence that your second pick, Infotech Enterprises is also associated with the railway signaling interlocking domain, works on all of that, how much of a bump up from the railway Budget and going ahead otherwise?

A: The company is in the area of engineering, design services and geo-spatial solutions and they should benefit quite significantly from the Budget in many ways. So though we've not factored anything as yet on that into the numbers. Engineering services are expected to grow to about a USD 40 billion business in the next 10 years or so, so that's a pretty big positive. They have got some pretty good clients like Pratt & Whitney and Bombardier on their list, so going forward, we expect and we have a target of Rs 338 on the stock right now.

Q: Your third pick, Cranes Software, give us an idea of how much of an up tick investors could look at in this stock if they were to put their money in?

A: This is a very niche area company, it's a software product company and it operates in an area of scientific software products, so you have typically scientific research organizations, which use their products. It's more of a retail product and they are also going into enterprise products and they have acquired a lot of companies in the last few years. They have been able to ramp up successfully sales of those products, so that is a positive factor that execution has been pretty and also their margins are among the highest in the industry at about 50%. We have a target of about Rs 170 on that stock right now.

Disclosure: 

I do not hold personally any of the stocks but have recommended to the clients.