Archies a safe bet: Ashish Tater

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Archies a safe bet: Ashish Tater

Archies is a safe bet, says Ashish Tater, Head of Research at Fort Share Broking.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See previous views by Ashish Tater See what other Experts & Brokerages are saying about Archies See messages about Archies

Archies is a safe bet, says Ashish Tater, Head of Research at Fort Share Broking.

Tater told CNBC-TV18, "Archies is one stock which I am tracking right from I entered into stock market and I always use to say buy near Valentine and sell on the Valentine Day or just a day before. But now the theme has changed, people are focusing on retail stories and this is one story, which I feel is drastically undervalued compared to its potential."

He further added, "Taking a call on Archies itself, it controls 60% of the market share in the Expression card segments and mind it its not just an expression card segment business right now, its into gifting other things. What interesting development that has happened to Archies is that it has a tie-up with Hallmark and they would be jointly opening stores in next few years in fact for this year itself they would be opening 12 Hallmark stores, which would be managed by Archies in this particular tie-up."

"Hallmark's have got merchandise rights for Snoopy and Garfield products, which is very popular among kids. So there is a lot of visibility in that sense. If I take a call in terms of number of franchises and exclusive outlets the Archies brand right now owns, it's close to 195 exclusive outlets and close to 300 franchises across India. These exclusive outlets spread across 57 cities and almost 14 states and there is lot of potential in terms of taking it forward. So the inclusion of Hallmark tie-up plus there would be access to those exclusive merchandise rights, I think Archies is one stock which definitely warrants re-rating and I am not taking a call in terms of valuation because right now the stock is available at 13-14 times, given its visibility I think there will be PE re-rating. On a marketcap of Rs 140 crore odd, I think Archies is one safe bet that people can look in terms of consumption and brand building theme that we are focusing on."

Disclosure: We have recommended the stocks to our clients and firm might also have positions. No personal holding in the said stocks.