Berger Paints may test Rs 109.50, says Aashish Tater, Fort Share Broking.
Tater told CNBC-TV18, "Berger Paints has given a robust quarterly performance and we feel compared to other peers it is relatively undervalued. We have a medium term target on the stock close to about Rs 118 and playing for an intraday target of Rs 109.50."
He further added, "I am going long on Amar Remedies . We feel the way Hindustan Lever, ITC has outperformed the indices it is time for the next level FMCG companies to come up with better rerating in terms of PE expansion. We expect the company to do close to Rs 16 of EPS on conservative side. Given its current price is around Rs 125 it roughly trades at a PE multiple of 8 times whereas the larger players trades at a PE multiple of close to 25-30 times so such valuation gap should be breached. I am playing for an intraday target of Rs 132 and a medium term target of close to Rs 200."
