Hold Asahi Songwon for long term: Aashish Tater

Hold Asahi Songwon Colors for long term, says Aashish Tater, Head of Research, Fort Share Broking.

Tater told CNBC-TV18, "Asahi Songwon is just Rs 100 crore market cap company, but this is very interesting stock because we expect that the PE multiple the stock is getting, it deserves better. Look at its clientele base - BSF, DIC Japan, Clariant Korea and also Sun Chemicals - all the best in the business."
He further added, "If you look into the fundamental aspect, the net profit year-on-year would be looking flat but the reason is because the tax break the company was enjoying till last year has been taken out. So on operational basis, the company has actually grown by 30% and we expect similar performance even going forward. The company operates through two of its manufacturing capacity which is going for Brownfield expansion. Currently, they have a capacity across pigments of close to 14,240 tonne per annum, which we feel would go to 16,500 eventually."
"Now, taking a call, they would do somewhere around Rs 21-22 next year. Also there was a stake buyback by Clariant into the company and when they sent a disclaimer to the exchanges that they bought roughly 5% plus into the company, the stock zoomed."
"We feel, going forward, there will be a few more deals like this which would actually eventually re-rate the stock because the float of the stock is getting reduced. Once it