Anant Raj can move to Rs 86: Aashish Tater

One can easily see Rs 86 in Anant Raj from next six to eight months perspective, says Aashish Tater, Head of Research, Fortunewizard.com.

Tater told CNBC-TV18, "Before I take a call on real estate or Anant Raj let me give you a brief snapshot of what has actually happened into the Nifty as a whole. 6108 was made, that was the top and then came the channel testing of 5550 and now it is again going to hit the resistance of 5892 as per our technical model."
He further added, "What has happened in this that the 24th April to 4th May there is a likely possibility that there is a metal selloff. We have seen part one of the selloff across the globe because we fear that there is a likely delivery based selling from China to various London Metal Exchange (LME) warehouses which is because the Chinese counterparts are looking to dereserve their base metal reserves, which will be very negative for the entire global situation. So this particular bounce back will see some topsy-turvy bounces on either side which will make market amid volatile."
"When you take a call on safety bets we feel if someone wants to invest into real estate Anant Raj is one stock where you can enter around at Rs 60-62 odd levels and exit around Rs 86 levels. It happens year on year after years. For last three years this has been a classical case and you get this kind of move very fast for this particular stock."
"If you see the fundamental aspect of this particular stock the debt levels are not at all high for this company, because they are sitting on a land bank which is equivalent to their debt and the company has guided that they will be relatively debt-free by next fiscal year and the positive cash flows that we are forecasting along with an EPS of Rs 6 gives us a lot of valuation comfort at current levels."
"So what we suggest is that once you buy around at Rs 62-63 levels you can easily see Rs 86 from next six to eight months perspective and whenever you see that Rs 86 coming to your screen it is better to book out completely from this stock and again wait for this particular level, because we see there will be large range bound trades happening into the midcap space, real estate space which will be factoring in a likely rate cut of 50-100 bps and that is how the momentum shifts from the valuation discounting factor, because if you see the Rs 122 Net Asset Value (NAV) the company is sitting on which will be adjusted to Rs 128 odd by next fiscal, even at Rs 68-67 it is roughly trading at 0.5 times and the company since they are going to have strong stream of cash flows in for next year we feel this is one stock that should be looked upon for 25-30 percent returns for this particular fiscal from next six to eight months perspective." Disclosure: Safe to assume that we may have discussed with clients but we do not hold the stock.