United Phosphorous may give 35% returns: Vora

United Phosphorous may give 35% returns, says Amisha Vora, Joint MD, Prabhudas Lilladher.

Vora told CNBC-TV18, “From medium term basis, we all like United Phosphorous a lot. We think that the company which was the fifth largest in its space globally has been on an acquisition spree and that’s going to be slowing down allowing company to start throwing free cash which is where the re-rating should happen from current 5.5-6.6 times multiple. A 15 percent growth and 10-15 percent plus kind of a re-rating, we think it can probably give upwards of 35 percent return. This is one of the midcaps that we are very aggressively looking at and pushing.”
She further added, “We continuously pursue stocks like Amara Raja, Motherson within the auto ancillary space. We like Mahindra Holidays. Within the realty space, we like some of the southern based players. So like that, we have our own list of midcaps. But the names which you mentioned, I don’t think we are aggressively pursuing any of those names.”