See 50% upside in Aptech: Rajen Shah

Rajen Shah, CIO of Angel Broking told CNBC-TV18, “We are very bullish on Aptech. It came out with reasonably fine numbers. This year also we are expecting it to clock about Rs 6.5 kind of earnings, because both international and domestic operations should be doing well and above that it pays Rs 4 as dividend, so the dividend yield itself works out to be very good.”

He further said, “If you see at the current price of Rs 58 I do not see any major downside. I see a 50 percent upside in the next 12 months basically because the market cap is about Rs 285 crore and there is about Rs 120 crore cash on the balance sheet. They are going in for a buyback of Rs 65 crore which is almost 25 percent of the current market cap and that too at a price till Rs 82.”
“Normally stocks do not move during buyback periods, but once the buyback is over which should be in the next nine months the stock can run into Rs 90. The risk reward in Aptech is very much in favour of reward,” Shah added.