Buy Varun Industries; target Rs 260: Agarwal

Buy Varun Industries; target Rs 260, says Rajesh Agarwal, Head of Research at Eastern Financiers.

Agarwal told CNBC-TV18, "One can buy Varun Industries with a stop loss of Rs 230 and a target of Rs 260. This company is the largest exporter of stainless steel kitchenware and domestic ware products and exports around the globe with around 1,800 products in it's portfolio. They have a re-rolling mill at Jodhpur which manufactures stainless steel used in kitchenware."
He further added, "They have recently diversified into wind power, oil and gas minerals etc, recently got a mining lease agreement Madagascar where the mining life is around 40 years, of course the mining will start production in FY13 but even at current valuation the stock is available at less than PE of 10 FY12 earnings. So we think this stock is highly undervalued and for intraday target one can buy with a stop loss of Rs 230 and target of Rs 260."