Buy Indo Tech Transformers, says Aashish Tater

Aashish Tater of fortunewizard.com told CNBC-TV18, "Indo Tech Transformers can be a very interesting pick at current levels because the market cap is Rs 200 odd crore and if we recall, this is a general electric company, a GE joint venture, that is the promoter of the company and multinational company (MNC) stock.""What has happened in the last few years is that when it changed hands, there were huge losses that were seen in the books and the company injected Rs 150 odd crore. That is equal to the parent’s shareholding just to save the companies from going into Board for Industrial and Financial Reconstruction (BIFR). Now these kind of moves are normally seen when the company is too serious about a business and going forward.""If you look at the prolecge.com, that is the parent’s website, they have been very innovative and they have now been expanding in to the solar aspect of the business as well as the wind businesses. So, a large part of the entire GE wins will actually be compensated at a lower margin for something like Indo Tech Transformers, so that the company survives in terms of EBITDA. And if I am taking a change of fortune from second quarter onwards," he added."Another interesting aspect that I am following up is that Prolec GE JV will see change of hands and that will trigger an open offer for the subsidiary itself. We feel that this is one stock where the promoters are investing as well as the Prolec and GE JV may see change of hands. That will be another upside for this particular stock.""Going by the simple mathematics, if I see, the stock can easily go and test Rs 260 odd mark just based on if there is a change of hands between Prolec and GE and that will mean a huge positive for the stock because the stronger promoter from China, that is what has been the street talk in the global scenario.""We feel this is one stock that can be looked upon from longer-term perspective. And change of fortune because of GE order wins, that will be an additional trigger for the stock and we feel at current level, you are buying a general electric company for just Rs 200 odd crore where the promoter has given away Rs 150 odd crore just to save the company. It is a good deal to buy at current levels," he said.