Lumax Industries may hit Rs 700, says Aashish Tater

Aashish Tater of fortunewizard.com told CNBC-TV18, "Lumax Industries could be a very interesting stock going forward. If you see the shareholding pattern, 37.5 percent is owned by a Japan based company, Stanley Corp that trades at a PE multiple of 30 times odd. We expect sales of close to Rs 1,350 crore for the full year for this fiscal and expect the market cap to be at Rs 400 crore. I think this can be a very good potential multibagger." "On similar lines, we have identified few stocks in the past also. SML Isuzu, Force Motors and ZF Steering all became multibaggers substantially year-after-year. Going forward what we feel is that the cash EPS that they will do is close to Rs 67-70 and EPS of Rs 35. Even a 20 PE multiple that is what Japanese company on a lower side gets, the target of Rs 700 is likely achievable this year," he said.