Expect 40-50% in Visaka Industries: Aashish Tater

Expect 40-50% in Visaka Industries from the next 6-8 months perspective, says Aashish Tater, Fort Share Broking.

Tater told CNBC-TV18, "Everest Industries, Hyderabad Industries, Ramco and even Visaka – they all are beneficiaries of minority changes. I am not taking a call that Visaka Industries is available at a 4 PE and it will get rerated to 7 or 8 PE, but what will happen is the earnings is going to rise from here because Rs 32 crore of profit for this fiscal and Rs 43 crore of profit for next fiscal, the stock is available at very good levels for at least a target of Rs 112 in days to come because the next quarter is going to be very good for the company and even after that."
He further added, "This is for the entire sector and not only for Visaka, Everest or Hyderabad Industries. So if you take a call from next 6 months perspective once that result comes out, we feel the stocks would get lot of trading momentum and then it will achieve our fundamental target, which is still roughly 30-40% in some cases and 20% left in other cases, but there is money to be made in this particular sector, though I would give you a cautionary note that it is not a sector where you look for trading on daily basis. You have to invest at least to a very reasonable level and wait
patiently for a much higher return."
"You cannot have a exit route if you try to accumulate a huge quantity that’s the only problem with the sector because the sector is into a hazardous industry, asbestos sheet as we all know. So if someone wants to a call from this perspective, 40-50% can be made in Visaka Industries from the next 6-8 months perspective."