Multibaggers: Aashish Tater's 2 picks for long-term

Aashish Tater, head of research, Fort Share Broking has picked up Archies and Sterling Holiday Resorts (India) as his multibaggers for the day.

Archies, he says, is grossly undervalued. "From the next three years perspective, this particular stock can give a return of almost 25-30%," he adds. According to him, Sterling Holiday Resorts (India) can see Rs 110 from the next one-year perspective. Houseviews: Tips to trade 4 stocks Below is the edited transcript of his interview with CNBC-TV18's Latha Venkatesh and Sonia Shenoy. Q: What is your target price on Archies? A: This is a world from an expression card market segment to single brand retail into the gift item area. What is going to make this stock interesting, from the next three years perspective, is that this particular stock can give a return of almost 25-30%. We feel this is grossly undervalued. It has approximately 495 outlets. Of that, 195 is owned and 300 is franchised, though they do not own those properties. On a marketcap of around Rs 90 crore, you are valuing each franchise around Rs 20 lakh. Hallmark is partnering with this company. When the company outlined its expansion plan for Hallmark stores, they have already opened 18 stores as of now with Hallmark Archies. That is going to expand to almost 50 by next year. So, from the next three-four years perspective, there is lot of visibility. With this expansion coming through well for the company, we feel the company will be rewarding its shareholders significantly. Right now, looking at the bottomline, it will not make much of an interesting bet. It’s still available approximately at eight PE multiple. We feel there will be significant expansion in terms of profitability. Thus, this could be one stock that can be in your portfolio, from the next three-four-five year perspective, till the actual potential is unleashed from the stock. Q: What about Sterling Holiday Resorts? A: The company’s core operation has suddenly turned EBITDA positive. Almost everyone in the service industry wants atleast one holiday in a year and wants to go to resorts. Thanks to rupee getting bashed to 56-57 levels, we feel there will be a lot of potentials for our hill stations. We feel, for the next three-four year perspective, there will be lot of demand. Given that the company, right now, is on expansion stage, that’s why looking at the bottomline would not be much of significance. The expansion is around 247 rooms to be starting from next Q3. The total chain is going to go to 1,629. So, thus looking at this particular, valuation we feel atleast Rs 110 on the stock is on cards from the next one-year perspective. Disclosure: Safe to assume stocks recommended to clients but no personal position.