Ashish Kapoor, CEO of Investshoppe is of the view that one can invest in Blue Bird with a two-year kind of horizon.
Kapoor told CNBC-TV18, "Blue Bird is very well positioned in the notebook and stationary market and they are very strong in the West and South India. Now this segment is likely to grow at a very good rate because of increasing literacy levels as well as increasing student population. They are basically in publication of textbooks and notebooks, stationary as well as commercial printing. There is a capacity expansion going on, the capacity expansion will actually go on stream in 2008, fourth quarter. But I feel it's a good stock for somebody with a longer term horizon, maybe a two year kind of horizon, good stock, available at cheaper valuations than Navneet Publications which is the other stock listed in the painting space."
He further added, "I feel a good stock with a long term perspective, the risk of course is still 80-85% of the market is with the unorganised sector, so lot of competition from there. Also ITC and Ballarpur, two players in the paper segment are also entering the stationary market. So they would have better control over their cost. I would say anybody with a two year kind of horizon should buy this stock."
