Long term investor can buy Nitesh Estates: Agarwal

Abhishek Agarwal of Fortune Interfinance believes long-term investor can look at current levels to buy Nitesh Estates to gain substantial returns going forward in the real estate sector.

Agarwal told CNBC-TV18, “A buy call on Nitesh Estates with a target price of Rs 19.6 and a stop loss of Rs 18.4. The stock is showing great interest in the market since last couple of days. Nitesh Estates is currently undervalued since the book value of the stock is trading about Rs 31 where the market price itself is up to Rs 20. Ritz Carlton is expected to start anytime soon which have a capacity of around 280 rooms. I believe that long-term investor can look around these levels to enter the stock to gain substantial returns going forward in the real estate sector.”

Agarwal further added, “A buy call on Uttam Galva Steel with a target price of Rs 73 and a stop loss of Rs 69.5. The stock was up by 13.5 percent in yesterday’s trade with significant volumes. The management has been consistently declining towards the possible takeover of Lloyds Steel. However considering yesterday’s trade, it seems that this deal can happen anytime soon. On our valuation front this stock is cheaply attractively trading at this point of time where the book value is about Rs 83.”

“A buy call on Canara Bank with a target price of Rs 510 and a stop loss of Rs 480. Canara Bank has been recommended earlier this week and I believe that it is one of the good picks in the public sector undertaking (PSU) sector. The stock is trading about one time price to book and 6.5 times of its price to earnings of FY14, which makes it very attractive at current levels. The stock momentum is also very strong therefore I believe the long-term investor can look around to make substantial gains after entering at current levels.”

“A buy call on Aurobindo Pharma with a target price of Rs 205 and a stop loss of Rs 192. Couple of days ago, Aurobindo Pharma has received its final approval from US regulator towards launching one of its drugs, which is used in treating HIV diseases. The potential sales annually for the drug can be around Rs 500 crore which can be a substantial booster to the topline of Aurobindo Pharma. Even though the valuation is still attractive since it is trading just merely nine times of its price to earnings for FY14 which is just not comparable with other peer group. I believe it is one of the very good stock in the midcap pharma space and can be looked around at these levels,” Agarwal said.