Like Jyothy Laboratories, says Prakash Diwan

Prakash Diwan of Altamount Capital Management told CNBC-TV18, "For Jyothy Laboratories, Friday was essentially the trigger, the announcement from Henkel that they could buy into Jyothy Labs, it is going to be positive because it is going to be beyond March 31, 2016, so there is still time. However, I like this stock because it has consolidated so well between Rs 270 and Rs 300 level, it been around in that range for about six months and very successfully now started leveraging the newer products in its portfolio. Earlier it was known for a single product and that was Ujala and now it has got Exo and Pril and all of them have started moving off the shelves. I think fast moving consumer goods (FMCG) is a space to be in right now. Most FMCG stocks have been resilient in this choppy market.""The other important thing for Jyothy Labs is that going forward they have 45 percent of their input side coming from crude derivatives. So a lot of benefit could happen. That is finally going to come because they used to always hold six months inventory on raw material. About 10 percent improvement in EBITDA margin could be significant for them. In that 12-13 percent EBITDA will move to 15 percent plus zone which is quite good," he said."Operating leverage is there, better utilisation rates are there and given the growth we are seeing in these products specially as consumption grows, I wouldn't be surprised even if I have to give it 30 plus multiple on the FY18 numbers. That could mean it could be in Rs 400 plus zone and as I said the Henkel portfolio could add up once Henkel decides to buy into the company may be next year," he added.