Span Diagnostic a multibagger: Aashish Tater

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Span Diagnostic a multibagger: Aashish Tater

Span Diagnostic is a clear multibagger, 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 Span Diagnostic See messages about Span Diagnostic BSE | NSE 01/01/70 Are Mutual Funds betting on ?

Span Diagnostic is a clear multibagger, says Aashish Tater, Head of Research, Fort Share Broking.

Tater told CNBC-TV18, "Span Diagnostic is Rs 55 crore odd marketcap company but what interests me into this company is their recent deal with SRL for Piramal Diagnostic business. A company was bought for Rs 600 crore having sales of Rs 230 crore odd. Span Diagnostic is into clinical research and we feel that the company's business model has got great potential going forward and they have been doing exceptionally well both in terms of topline and bottomline growth. The company has recently also announced a bonus and has been a consistent dividend payer for last so many years."

He further added, "Interesting in this particular space is that the company promoters has promised close to Rs 100 crore of sales for this year and Rs 118 crore is what we project for next year. At one point of time the company would be trading at least one time to marketcap to sales ratio that means a clear 100% upside from current levels. However, because it's a low profile stock in a smallcap category we feel the stock should have some discount from a target perspective. So we have pegged the target of close to Rs 100 but this stock could be a multibagger given the strong ownership from the promoter side and the promoter has increase their stake by 2.5% in last quarter itself. So we feel this is a clear multibagger."

Disclosure: I am not suppose to own the stock recommended here but this has been Diwali picks from Fort to all our clients and thus we feel this stock I have vested interest for our side maybe this stock have also been bought into the portfolio of the firm, so we might have also vested interest in that sense.