See 25-30% return in WABCO India: Tater

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See 25-30% return in WABCO India: Tater

One can see 25-30% return in WABCO India from one year perspective, says Aashish Tater, Head of Research at 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 WABCO India See messages about WABCO India

One can see 25-30% return in WABCO India from one year perspective, says Aashish Tater, Head of Research at Fort Share Broking.

Tater told CNBC-TV18, "WABCO India is a portfolio bet. It is not a stock, which will give 50-70% return year on year but it is a stable stock that should definitely be a portfolio bet from longer-term perspective. It is for someone looking to take a return of 20%, year on year from next three-four years perspective. The stock had coverage even last year from our side, when it was hovering around Rs 1,120 mark. We had a target of close to Rs 1,400. We still maintain at even at Rs 1,400 we will take a 20% call for next year. Its current price is around Rs 1,300-1,350."

He further added, "Taking a fundamental call, I see a bottomline of close to Rs 173 crore to Rs 185 crore for next fiscal. The stock would be hovering around a marketcap of Rs 3,000 crore. Currently, its market cap is Rs 2,500 crore, which is 18-20% upside from current levels. Their service clientele comprises of top manufacturers, original equipment manufacturers across the world. We have seen what is happening globally, all the premium players whenever there is a problem with the company they go and buy this company at a fair valuation."

"I was reading about similar kind of stories and they got it booked at almost three times price to sales ratio. I feel that the fair value for the stock is at least Rs 1,750 from next one year perspective. So, there is a good chance of 25-30% return from one year's perspective. Almost 75% is owned by promoters, so there is hardly any float left. So, even from that angle there would be good interest into the stock on any downside."