Mehraboon J. Irani, MD & CEO at Gini Gems Consultants told CNBC-TV18, "Balmer Lawrie is a mini-ratna company and the management has clearly stated and I feel they should be able to achieve it over the next five years becoming a Navratna company. Rs 1900 crore turnover becoming as much as Rs 8000 crore over the next five years. I personally believe this is possibly the cheapest stock. It has got various business verticals including logistics."
"The company is going to start its operations on the hub in Vizag which it had invested over Rs 300 crore at the joint venture. So, the company whose turnover is going to grow possibly four times from here in the next five years, a debt free company, a mini-ratna right now, which could become a navratna, I personally believe the stock could at least be a doubler over the next two and half years," he said.
"At the present level, at the present valuations, it has absolutely high comfort. I remember having recommended the stock much earlier, much before the bonus issue came last year when the logistics was the full focus because of the GST coming."
"I still believe it is possibly the cheapest stock in terms of valuations even if you look at it as a pure logistics play while the other businesses also are picking up."
"The other company which I like is Sinclairs Hotels. Bleeding to the core the entire sector, highly over-leveraged, the entire hotel sector has maybe Rs 10000 crore turnover with a few hundred crore of losses. However Sinclairs as a passing bet, I have recommended earlier and now I am more aggressively recommending it."
"The point is if you look at Sinclairs right now, it is a debt free company, doesn’t have any loans, consistently making profits, consistently paying dividends, very honest pedigree, around 450 rooms in place and it has five properties in the state of West Bengal including Darjeeling. It has got its own hotel in Ooty and the Andamans."
"If you look at Sinclairs, Rs with 9 crore bottomline and equity of Rs 6 crore, promoters recently have increased their stake to 57 percent and now Sinclairs intends to make 450 rooms into 600 rooms over the next two years. Expansion is in play and they are setting up one more hotel in the state of West Bengal."
"It is available at just 7.5 times EV to EBITDA. For a company whose balance sheet cannot be better than what Sinclairs is having, I personally feel this is the most under owned stock."
"Over the last few days more investors have come in, the liquidity has improved. While the Sinclairs stock has moved up by 20-30 percent over the last few trading sessions, I still feel the stock has enough steam in it to go above Rs 400-450 with a clear disclosure in place, both the stocks recommended – Balmer Lawrie and Sinclairs, I personally own it and my clients whom I am advising also own it," he added.
"I do believe the time has come in this market when the market suddenly gives way, markets are down right now, people need to find stocks where there is valuation, where there is no froth, where there is no complacency coming in. These two companies because of the fact that they are absolutely undervalued clearly fit the bill as buying recommendations."
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