Everest Industries can test Rs 260-265: Tater

Everest Industries can test Rs 260-265, says Aashish Tater, Head of Research, Fort Share Broking.

Tater told CNBC-TV18, "We maintain that for this fiscal Everest Industries would do Rs 33 of EPS - that was on my last interview sometime in April 2011. We had a two year target of Rs 264 on the stock. We have not changed our view. When we had renewed interest into this particular space, the stock was hovering around at Rs 110, Sahyadri Industries was hovering around the Rs 35-40 mark and Hyderabad Industries was nearer to Rs 270-280. The stock has given a very fast run up, almost 30% from the lows. So there might be some cool off but this is one stock which should be a portfolio bet."
He further added, "From the next fiscal perspective, we have a revenue target of close to Rs 988-1,020 crore on the stock. A company which has reduced its financial risk by paying off its debt, the interest cost has also gone significantly down YoY from the last two years perspective. A very safe bet into the space with decent dividend yield and a chance that the stock would in good times again go and test a median of close to eight multiples."
"The stock has done an EPS of Rs 33 for this fiscal and we expect Rs 37-38 for next fiscal. So on 7-8 PE multiples the stock should go and test that Rs 260-265 which is roughly 60-70% upside from the next 8-10 months perspective."