Watch the interview of Jagannadham Thunuguntla, Head of Research at Karvy Stock Broking with Anuj Singhal & Ekta Batra on CNBC-TV18, in which he shared his readings and outlook on market and specific stocks.Below is the verbatim transcript of Jagannadham Thunuguntla's interview with CNBC-TV18Hester Biosciences"Hester Biosciences is one of those slightly unexplored stories in the animal healthcare space. It is one of those niche businesses exclusively in animal healthcare. The entire story is around peste des petits ruminants (PPR). It is a PPR plague which is causing a problem for sheep and goats. So FAO is coming out with USD 700 billion project to eradicate this PPR that comes to about USD 0.5 billion on each year basis.""Hester being a new emerging story in the animal healthcare can be very big beneficiary of this opportunity. The company is in very early stages and we feel that with the margins the company is producing and the returns on equity very healthy and with returns on EBITDA margins, we feel upsides are yet to come. Whoever is willing to wait for next two to three years, it can be a multi-bagger and may be in next 9-12 months we are giving a target of Rs 865," he said.Kansai Nerolac Paints"Kansai Nerolac Paints is a clear leader in the industrial paints and if automotive demand picks up, one of the natural beneficiaries will be Kansai Nerolac. Thanks to crude oil fall, crude oil and oil derivatives contribute about 45 percent of raw material cost. So paint businesses are clear beneficiaries. Above that the innovation is helping the decorative segment of the paints business." "With very healthy EBITDA margins and returns on equity, the company has been expanding quite strategically. We feel that Kansai Nerolac is a good theme; we are giving a target of about Rs 280," he added.
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