Buy Varun Industries, says Rajesh Agarwal of Eastern Financiers.
Agarwal told CNBC-TV18, "Varun Industries can be bought with a stop loss of Rs 252 and target of Rs 285 on an intraday basis. This is one of the largest stainless steel kitchen ware and domestic ware exporter and exports around the globe with around 1800 products."
He further added, "They have recently diversified into wind mill, power, oil extraction, oil and gas, mill power generation etc. They have got a mining license in Madagascar, which is going to give good amount of revenues with a mining life of 40 years. But the real operations in the Madagascar mine will be starting from FY13, so we are not taking that into consideration right now. Btu at this point of time it is trading at FY12 earnings price multiple of less than 10 which we feel is quite attractive, hence we recommend a buy with a target of Rs 285 on an intraday basis."
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