Blue Dart Express a safe bet: Ashish Tater

Blue Dart Express is a safe bet from a longer-term perspective, says Ashish Tater, Head of Research, Fort Share Broking.

Tater told CNBC-TV18, "Now if I take a call on Blue Dart I would like to take a call on the sector itself. I think there is ample opportunity in the logistics as a space as a whole. Even the organised players have got 20-25% year-on-year growth intact for at least the next five-six years. So, I am taking a portfolio bet on to these kinds of stocks from a very longer-term perspective. One should invest a small quantity."
He further added, "If I take a valuation call on Blue Dart, it is available at USD 700 million with almost 80% owned by DHL itself. One of the respected investors owns 5-5.5%. So, if I adjust all these things, the relative flow that is available into the markets is just Rs 300 crore. Even from a delisting candidate perspective, there are market rumors that the stock would be delisted somewhere around Rs 1,850-2,200 depending upon how the arrangement are in between the large players."
"Even if this particular arrangement does not happen and someone is looking to build on portfolio, this is a safe bet from our side from a longer-term perspective. We have a target of close to Rs 1,810 for this fiscal."
"The sector is very attractive. If I take a consolidated opportunity in the next five-seven years, I feel that there could be 30-32% growth once organised players actually start rationalising their potential."
"We are thinking this because we think just in time theory is the play and call for now as diesel prices hike and warehouse costs are going to increase substantially even in current levels. So, in that scenario, what will happen is people would be looking for exact number of units that they require and would not mind paying that extra premium. Thus, we are taking a call on Blue Dart."