MBL Infrastructures may move to Rs 350: Sandip Sabharwal

Sandip Sabharwal of asksandipsabharwal.com told CNBC-TV18, "The way I look at markets, I think largecaps will also do well. And then, the midcap universe looks slightly stretched, but there is value in smallcaps. So, I think largecaps and smallcaps is where the value paradigm lies. So, among the stocks which we have recently got into and which we have been holding for some time, one company is called MBL Infrastructures.""It is one of the road developers but it has a very de-risk business model, it did not get aggressively into build, operate, transfer (BOT) projects. It avoided BOT projects when all of these companies were getting into it and it has been very strong in engineering, procurement and construction (EPC). It has been profitable unlike most of the companies which have gone into losses.""Now, it has started getting orders after waiting for the margins, which it wanted to come back. So, the company is very well-placed and it trades at just around six times next year’s earnings. So, next year profits, could be around Rs 140 crore. And from its peak 52-week high of around Rs 320 it is around Rs 215 now. But, in a year’s time, it could easily go back to around Rs 350 levels. So, that is one stock which we have bought into," he added."The other company is Praj Industries. There is a significant turnaround on the businesses across the board. The ethanol blending programme is helping them a lot, a lot of orders are flowing in. Then the water and waste water business of the company is doing very well. So, that is one company which directionally as a high quality midcap should do very well. Around 15 percent of the market capitalisation lies in cash. So, stocks trades at around Rs 90 today. It could easily be Rs 150 by the end of 2016 and much higher going forward as its second generation ethanol plant comes through," he said.