Buy Mundra Port, says Sanjay Vaid

Buy Mundra Port, says Sanjay Vaid of SBI Capital Securities.

Vaid told CNBC-TV18, "Mundra Port is one of the companies which is the largest beneficiary of the demand supply mismatch in the port segment. The stock seemed highly overpriced a few days back but the stock has corrected hugely in the past few days based on the adverse macro economic factors. However, at 17 times FY13 numbers stock looks at attractively valued given that it is a stock which is generating cash flows and a high ROE. On the OIE front also we have seen the first signs of short covering happening."

He further added, "In this series of August to September rollovers, the stock had seen huge short roll of almost 83% versus 77% six months average. But in the last two days we have seen some short covering happening in the stock and stock has clearly closed above Rs 151-152 levels, so we feel that can easily head higher. We are recommending a buy in Mundra Port with a target price of Rs 160 and stoploss of Rs 149."