Buy Fedders Lloyd on dips: Aashish Tater

Buy Fedders Lloyd on dips, says Aashish Tater, Head of Research, Fort Share Broking.

Tater told CNBC-TV18, "Fedders Lloyd is one stock that we try to give a quantitative call. A quantitative call is basically the stock goes and retresses at particular levels. Last time I recommended this stock somewhere around like Rs 78 odd mark and we had a target of close to Rs 97-99 odd mark. Once it tested that it has again tumbled down."

He further added, "The logic behind this particular recommendation is it goes up by certain percentage and then it retresses back to certain levels. But if I go through the simulators first it predicts that the stock should go and test Rs 53-55 odd mark, which is roughly Rs 18-20 downside from current levels and I think that would be the right level to enter from six to eight months perspective."

"Fedders Lloyd normally holds limelight sometimes in quarter one of every year. This is because of summers and the way the company has been actually doing well, both in the refrigeration business and now they have entered into other white good segment and they had been marketing aggressively, I think there is lot of cushion in terms of valuation perspective also."

"If I try to combine fundamental and say that the person enters at Rs 55 odd mark, what he would be buying, he would be buying a company into a space at 0.25 market cap to sales ratio from one year