Amulya Leasing may move to Rs 180: Aashish Tater

Aashish Tater of fortunewizard.com told CNBC-TV18, "Amulya Leasing and Finance sounds to be an NBFC company but it is not an NBFC company. The name got changed to Apollo Irrigation. So, now if you see the consolidated front, the company has been doing sales of around Rs 25 crore per quarter which we expect that for next year it will do close to Rs 180-200 crore. What interests us in this particular company is that it is a part of Apollo Group company, so that company has a proven track record.""Along with that, if you see the distribution network, it is going to leverage from that perspective too. So, if you see the peers, they trade at 4-5 times market cap to sales. In fact the industry leader Astral Poly trades at 4.5 times sales and is trading at a PE multiple of 50-60 odd times. On the other hand we expect for next year the company will do an EPS of close to Rs 10 once this expansion completes. So, that will transform, currently the stock is trading 14 times forward and the management guided that they will try achieve a CAGR of over 30 percent and in next three to four years after the first jump, they will do close to Rs 700-800 crore in terms sales," he added. "There is a huge potential in terms of rerating because for this year they will do around somewhere Rs 100-120 crore, for next year Rs 200 crore and then a substantial jump of almost 100 percent followed by 30 percent CAGR. We think a lot of value can be created. From Budget perspective also irrigation stocks and similar kind of business will be in focus, so from short-term perspective you can keep a target of Rs 180 and if Budget surprises we will not be surprised if this stock turns out to be a big multi-bagger even from that levels," he added.