Nestle attractive now; buy Oberoi Realty: SBICap Securities

Watch the interview of Mahantesh Sabarad, Dy VP-Research at SBICap Securities with Anuj Singhal & Ekta Batra on CNBC-TV18, in which he shared his readings and outlook on market and specific stocks.Nestle IndiaMaggi fiasco is only a part of what Nestle India offers over all in the country. What we are looking at is that sooner than later they will be able to come out of this Maggi row because a lot of development has happened over the months in terms of challenging the order. The new CEO has come in, the new CEO is talking a lot of things about focusing and being flexible in their product portfolio. So that is something which we find is encouraging.If you look at from the companies own fundamentals ahead then the whole commodity price correction that is happening, it is something that also helps and their raw material cost largely is milk. We have seen that milk prices are also going down. So, effectively there is a scope for margin expansion ahead and because of the stock correction, the valuations are appearing attractive, something like 37-38 multiples of CY17. Currently we have Rs 7,300 target price on Nestle and that is like talking about a year from now.He also has a target price on Oberoi Realty of Rs 370 per share.