Buy WABCO-TVS on every dip: Tater

Buy WABCO-TVS (INDIA) on every dip, says Ashish Tater, Head of Research, Fort Share Broking.

Tater told CNBC-TV18, "Webco TVS has got tremendous potential going forward. A stock that is going to give you a CAGR returns of close to 20-25% year-on-year for next 3 years at least in terms of visibility of topline and bottomline."
He further added, "They are the pioneer in this space of assistant air breaks. I feel this company has got tremendous potential. Now look into the profile in terms of customers, all the top automobile companies they are the main suppliers. Almost 85% of the market share is captured by them in the original equipment manufacture segment and in the replacement industry they have a market share of close to 70%. Such a market leader is available at a PE multiple of  less than 14 times, I think this talk is definitely a buy on every dip and we have a medium-term target of close to Rs 1400 odd mark, but I would still suggest that one should keep a very longer-term view onto the stock. Thus this is one portfolio bet which should be added on every correction whenever there is an anti-point for the stock for next 2-3 years perspective."