Aashish Tater of Fort Share Broking feels that RSWM has target of Rs 240-250
Tater told CNBC-TV18, "We have been recommending RSWM right from Rs 108 levels and we had a modest target on the stock close to Rs 240-250 levels, the reason being that the company owns 20% into Bhilwara Energy. The LNG Bhilwara Group company we feel has got brand equity in terms of Mayur which is reflected into the current bottomline of the company."
He further added, "At current market price, the stock is trading at close to the valuation that it deserves for its core business. But with Bhilwara Energy IPO coming in the next two-three quarters, this company can get rerated in no time. On a marketcap of just Rs 450 crore, the company's stake in Bhilwara Energy is valued at close to the Rs 400 crore mark because in 2007-2008 IFC picked up a 10.48% stake for close to Rs 200 crore. We feel this stock has still got some steam left and it can be traded in and out into this particular range till the stock achieves the target of Rs 240-250."
