BOC India can give 50-60% return over next one year, says Aashish Tater, Head of Research at Fort Share Broking.
Tater told CNBC-TV18, "We have been pushing BOC India right from Rs 220 because we felt that people are looking at trailing PE, but if looks into the earning potential of the business the stock was trading at mouth-watering levels. Looking at its stellar performance, for this quarter it delivered an EPS of Rs 5 and we are working with Rs 20 for next fiscal in terms of earnings per share."
He further added, "My own calculation on the stock was that annualised equivalent value should be around 13-14%. If the company moves for delisting which it eventually will, it should get at least Rs 500 on the stock when it comes to delisting. The idea here is that if you want to invest, invest like an Indian investor, so you are comfortable investing in this particular stock around Rs 330 odd mark."
"Last year's base was Rs 270; we have shifted the base to Rs 330 for this year. When you are trying to tender the shares look from foreign partner's perspective, where they would be easily paying 25 PE multiple. That can get stretched to 30-33 times because there is hardly any float into the market and I don't think Linde would mind paying that extra buck for this particular stock. This is a safe stock, which can give you still 50-60% return over next one year."
