Here are some stock views from Ravi Kataria

In an interview to CNBC-TV18’s Prashant Nair and Ekta Batra, Ravi Kataria, MD at Investment Imperative spoke on what makes him positive about Vikas Ecotech,Talwalkars, and Rushil Décor.Below is the verbatim transcript of Ravi Kataria's interview to Prashant Nair, and Ekta Batra on CNBC-TV18.Prashant: What stocks are on top of your mind?A: Vikas Ecotech is a specialty chemicals player and the company provides the compounds and specialty chemicals which are lead free. It drives majority of its revenue from organotin stabilisers, recycled compounds -- organotin is lead free which is supplied to pipes, manufacturing, engineering kind of industries. This is US FDA approved product, so, that is why it has gained a lot growth in exports over the past say two years’ time. Worldwide we are seeing the regulation being put in place for the usage of chemicals which are toxin free. As a result, we are expecting in India also the government to come up with a regulation for pipes manufacturing which can be lead free.If that happens as we envisage in over the one or two years’ timeframe, there will be a serious run for the stock because it is one of the few players globally which manufactures such commodity. Its space in recycled compounds, it manufactures certain products from waste cooking oil, it has tied up with Nafigate Corporation in Czech Republic for supplying of technology and when you see these two-three spaces, they have grown from nothing to almost like Rs 50-80 crore in their topline in just last two years’ time.We are estimating doubling of the topline over the next two years because of one, operating capacity expansion to 50,000 metric tonne in their plant in Gujarat, says opening up in Noida. So, they will see a tickering of their operating margins. There are just four or five which have got this kind of technology in place or the chemicals manufactured. PMC is one, Galata Chemicals is one, couple of players from China, and if we see, their operations in India are limited and cost constraints if we consider, the multiple parameters, the Indian players would certainly go for something like Vikas Ecotech for their long term supplies. As a result, we saw Jayant Chheda also putting up increasing stake from 2 percent to 10 percent in the stock.Ekta: Your target price is Rs 49 by when?A: By FY19. It is Rs 27 by FY18 because their Gujarat plant is expected to commission by end of FY18. So, the rolling over of the benefits will come in FY19.Ekta: The other one that you are looking at and it is fairly researched is Talwalkars. What is new for you?A: The new therein is we are seeing it from the global perspective, like David Lloyd, they have tied up with them. We are expecting that they would get their regulations approved for opening up say club in Pune in next couple of quarters. So, these would trickle down into the revenue line up in say FY18 and FY19 and they are Power World Gyms (PWG) brand, they are targeting 100 odd gyms in Sri Lanka apart from adding another 100 in India. So, we are looking at huge portfolio of gyming business and splitting up of business into the lifestyle with David Lloyd. So, there will be a serious unlocking of value if things go as per the plan from the managements perspective.Ekta: The other one that you are tracking is Rushil Décor. That one has already seen a good run, what are your thoughts on this stock?A: We have achieved two price revisions on that particular stock. We had started advising on that since the beginning of 2016. Now, the laminates and MDF space is Rs 6,300 crore in India, it is expected to grow at 10-11 percent over the next five years timeframe, but the organised players are expected to grow at 15-16 percent. Rushil already demonstrated 19 percent topline growth over the past seven odd years.The unorganised players have the cost advantage which is going to drain out because of goods and services tax (GST) in place and secondly restrictions from Myanmar side for selling of unprocessed timber. So, these two things when combined, their cost will increase and finally we will see a good topline growth for Rushil by FY19. Although stock is trading at EV/EBITDA at 16x currently which is in-line with the big players like Greenlam, but we are expecting some more augmentation in operating margins.