United Bank of India has target of Rs 125, says Devang Mehta, Vice President & Head - Equity Sales, Anand Rathi Financial Services.
Mehta told CNBC-TV18, "Largecaps would be the more preferred space at this point of time. But certain Midcaps do also encourage us to, as such have a look into them and be interested. One of the stock that we do like at current point of times is United Bank of India. We have just initiated coverage on United Bank of India and now this stock looks very attractive, as it has got a very good CASA share. The company also operates in the more in the eastern parts of the country with 1,600 branches, plus also the Non-Performing Assets (NPAs) are still under control and the price to book if we just calculate it, it is just around 1-1.07, so probably a lot of upside from here and we do have a price target of Rs 125 for United Bank of India."
He further added, "Other stock that we like in the capital goods space, the midcap stock is BGR Energy . Again, BGR Energy is one of the prime players in the balance of plants and also its also getting integrated into the forward integration way and the company has a huge order book size, it's also going to get some good orders in the critical boilers space and all. So probably, BGR Energy also at current point of time is looking a very good stock to invest if somebody has a one year, one and half year horizon."
