Rajesh Agarwal of CD Equisearch is of the view that Porrits & Spencer can touch Rs 400-425 in a span of 9-12 months.
Agarwal told CNBC-TV18, "This company was incorporated in 1968 with major holding being with Porritts & Spencer of UK and in 1999 with the acquisition of majority of shares by a German company the company came under VOITH Group. This company makes dyer fabrics papers for the paper industry and it is the only company which makes the entire range of textiles dyer fabrics for the paper industry and apart from it something for the textile industry also and with revival in paper industry and expected major rise in investment and capex plans of paper industry and all this company is going to do well in times to come."
He further added, "Apart from this the company has got Rs 29 crore cash in its book, which accounts to around Rs 64 per share. As a part of VOITH Germany the company has access to latest technologies and a strong cash position, which the company has apart from which 74% promoter holding. This company is the right candidate for a buyback offer or so. If a buy back offer comes this maybe a strong trigger for the company. It has reported a very good number say 23.3% growth in bottomline in the current year which is September ending around an EPS of Rs 21, this works out to be a PE of 12 and we think it can touch Rs 400- 425 in a span of 9-12 months."
Disclosure: The above stock has been recommended to our clients and analyst hold VST Tillers Tractors.
