See 25-30% upside in Mangalore Chemical: Rajen Shah

See 25-30% upside in Mangalore Chemical, says Rajen Shah, Angel Broking.

Shah told CNBC-TV18, "We receive much lesser rainfall than what is expected but then towards the end the catching up happens and ultimately it ends with a normal monsoon."

He further added, "About 2-3 years back when we used to have the CNBC Investor Camp and I was always strongly recommending Mangalore Chemical at about Rs 22-23 levels as one company, which would get sold out and in 3 years the stock has doubled."

"It is the only fertilizer company in Karnataka and is very close to the sea, so import of raw material is also easier from there and plus it also owns more than 100 acres of land over there. So the sale of Mangalore Chemical is now very eminent, may be it could take another 3-6 months but it is surely going to happen and for Coromandel it is just 1 quarter of net profit enough to buy Vijay Mallya’s 30% stake. One quarter of Coromandel’s net profit can easily buy 30% stake of Vijay Mallya. So at about Rs 48 still we believe that there is about 25-30% upside and the way the volumes are picking up off late gives an indication that something is happening. So we are bullish not only on Mangalore but many other agri companies."
 
"In sugar we like EID Parry and Bannariamman Sugars. Bannariamman Sugars is a very low profile Coimbatore based company, a very clear management doing a lot of philanthropy activities in Tamil Nadu and last year reported Rs 92 EPS and in a good year this EPS could go to as high as Rs 175. Stock is trading at about Rs 705-710. So we are looking at a 30-40% kind of upside straightaway in Bannariamman."