Mehraboon Irani of Gini Gems Consultants told CNBC-TV18, "I think a year ago I recommended Asian Granito at half the price and I am not being greedy, I know what I am stating that I do feel that the stock has the potential to at least double from here or maybe even touch Rs 800 over the next 12-18 months."
"The reasons are very simple, according to me there is going to be a huge thrust on housing. Most companies will do well, but if you look at Asian Granito as a company, over the last four years the company has consciously made efforts to move into the higher margin segment."
"It is today the third most profitable tile company in India and the fourth largest in terms of revenue. It is behind the Johnson, but as far as profitability goes it is ahead of Johnson."
"The company reported an earnings of around Rs 17 in 2016-17 and I expect this company to grow at, at least around 40-42 percent CAGR over the next three to four years and I will not be surprised if we have an earnings per share of around Rs 40 in 2020 i.e. 2019-2020."
"Now considering market discounts this at least a year in advance, I think over the next 12-18 months at Rs 40 earnings, if you give it a 20 P/E, the stock should be Rs 800. So I think the stock while having given super returns, it is not the time to sell, but possibly accumulate or possibly buy more."
"There could be declines here and there but at the end of it all I personally believe it is a 50 percent return over the next 12-18 months. I am personally invested, I am advising my clients to continue to hold on to and buy more of it," he added.
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