Buy Archies, says Aashish Tater

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Buy Archies, says Aashish Tater

Buy Archies, says Aashish Tater, Head of Research, Fort Share Broking.

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

Buy Archies , says Aashish Tater, Head of Research, Fort Share Broking.

Tater told CNBC-TV18, "Archies is one pick that we have been pushing for quite some time now. There is a lot of theme that is going into the retail space and consumption space and Archies with this particular criteria. Now it controls almost 60% of expression market and recently last year it announced that it is going to enter in JV with Hallmark where they would be actually managing the stores for Hallmark in India, which means the two counter parties which are rivals are going to befriend in India, which will definitely be a booster for Archies."

He further added, "Now taking a call from the Hallmark perspective, they have got exclusive rights for Garfield and Snoopy which is very popular amongst kids and I think talking a call on market cap of just Rs 140 crore where they own 195 exclusive outlets plus 300 franchises across 14 states, I think looking from that perspective of market cap to franchisee ratio, I think it's grossly under valued and taking a call if someone has a potential to hold this stock for next 3-4 years I can definitely expect 20-25% return year on year on to this particular stock."

"Talking a call on their quarter one numbers it has been a gradual increase year on year because of their expansion. So I am not right now considering their bottom line which will be somewhere around at Rs 10-12 crore mark for this year that means almost 13-14 times in terms of PE multiple. But this is one candidate that has got re-rating chance in PE terms and also because of its solid business growth and presence across India. This is definitely a buy from our side."