Buy Arshiya International on dips, says Aashish Tater

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Buy Arshiya International on dips, says Aashish Tater

Buy Arshiya International on dips with long term view, 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 IID Forgings Lt See messages about IID Forgings Lt

Buy Arshiya International on dips with long term view, says Aashish Tater, Head of Research, Fort Share Broking.

Tater told CNBC-TV18, "Arshiya International is not a buy at Rs 120-125 mark; it is a buy somewhere around Rs 105 which the technical indicators are also showing. Now if I take a call from business perspective where the market takes it in terms of price at Rs 105 it would be available at the market cap of Rs 640-650 odd crore. It is into a business called logistics and we have been bullish for quite some time now on relative to index stocks and also some of the midcaps which have been looked at."

He further added, "If I take a call on Arshiya at around Rs 105 it will do a net profit close to Rs 84 crore though the management pointed out Rs 90 crore but we have taken an interest impact of Rs 6 crore because of rising interest rate. So on Rs 84 crore and a market cap of Rs 650 crore it's available at a PE of 8 times. What is interesting is that this is going to be a cash cow for the company, the free trade and warehousing loan, which the company is operating at Panvel and another one will be coming up in Khurja and soon to follow somewhere in Nashik."

"So given the potential of the company, I think a company which is having a unique business model and would be available at a single digit multiple, I think this warrants immediate attention once it comes to that Rs 100-105 odd mark. And from longer term perspective this is a portfolio bet for people, who are looking for safe bets, quality stocks, quality management for return of 22-25% year on year from three years perspective. So, looking in to all this space plus their railway signaling business, which contributes almost 20% to their business, I think this stock is definitely a buy on dips from a longer-term zone."