Accumulate Sumeet Industries: Ashish Tater

Accumulate Sumeet Industries, says Ashish Tater, Fort Share Broking.

Tater told CNBC-TV18, "We feel the market has entered into a long-term consolidation phase with a broad range of close to 4,700-5,600. We have been suggesting to our clients that every time you enter into a midcap, at least twice short the Nifty itself. We have been recommending this from January in the New Year itself where we recommended Alok Industries and others because we have been quite bullish on textile for quite some time now." He further added, "This strategy has been paying off well for us even now. If I see the last 10-12 recommendations that we have given to clients, there has been good Nifty returns in terms of shorting but the textile stocks have stabilised plus-minus 5%. Overall, net-net these pair trading strategies have worked well for us." "On Sumeet Industries, for the last 20-25 days has seen a broad range of Rs 25 to Rs 28-29 mark but the Nifty has again fallen by 6-7% and is still having a negative bias attached to it. If I look into their expansion, they are going to post an EPS of close to Rs 6-6.5 for current fiscal, which will be available at Rs 28. In FY10 itself, the company has commissioned a two lakh plant on continuous polymer plants along with that capacity expansion into the FDY and POY yarns close to 23,000 TPA