Merck may move to Rs 1500, says Aashish Tater

Aashish Tater of FortuneWizard.com told CNBC-TV18, "Merck belongs to the same parent that Fulford India used to belong to. Now what happened in the scenario that Fulford had gone for delisting before that Dashtag Limited had come up with open offer for 75 percent.""Similar situation which we feel is now for Merck because now Merck has been acquiring, that is the parent company, Merck Global has been acquiring companies across the globe in the range of annualised equivalent value of 7.5 percent to 10-12 percent and incidentally this particular company itself because it is on a low growth phase but still it is available at 16.5 percent annualised equivalent value and that roughly translates into that if company makes a move of open offer taking their shareholding pattern from 51 percent to 75 percent we expect that should happen somewhere between Rs 1,400 - 1,500 because it doesn't make much of a sense for delisting in a phase one manner. Similarly what they did for Fulford India.""That is one scenario which we are looking at where we feel that the first target should be somewhere around Rs 1,400 and Rs 1,500 from the next one year perspective because the Fulford delisting has completed this year itself and the parent is sitting on huge cash reserves even now and they are looking to acquire companies outside their purview and this is one company which is available at a decent valuation.""You are acquiring a baby outside then your own baby is sitting at a much deep discount. So, there will be definitely a substantial offer that we feel will be rewarding for shareholders. So, on downside we do not see the stock falling below Rs 680-700 levels but on upside there could be a 100 percent return given if these kind of developments happen over the next one year," he added.Disclosure: It is safe to assume that we have recommended the stock and strategies to our client. As an individual I do not hold any recommended. So, no personal interests but since we have recommended to client vested interest lies.