United Phosphorus has potential to touch Rs 260, says Rajen Shah, CIO, Angel Broking.
Shah told CNBC-TV18, " Tata Motors has run up a lot and as I said earlier we booked profits around Rs 230-235 levels, but there are some interesting things which have happened in the market. Companies which have not reported too good numbers have actually gone up and some companies which have delivered reasonably fine numbers, better than what the market was expecting those stocks have come down. So, what we have done is that, we have switched from these kinds of ideas which have moved up very sharply over the past two months and got in to certain ideas like United Phosphorous around Rs 140-145 levels. The stock is highly underpriced at this level."
He further added, "United Phosphorus reported almost Rs 13 of annualized EPS and at about 20 times the earnings and the stock is worth Rs 260 whereas it's quoting at about Rs 159 or so right now. So, we have got into that. Even if you see companies like Godrej Industries , last quarter the profit was up almost 40% and yet the stock was beaten down from Rs 214 to Rs 200, so we have actually increased our positions in United Phosphorous and Godrej Industries over the past 2-3 weeks."
