Pick Ganesha Ecosphere, says Aashish Tater

Aashish Tater of fortunewizard.com told CNBC-TV18, "Ganesha Ecosphere can be a very interesting bet even from current levels. Last time, when we recommended in 2014 was because of a Coca Cola joint venture at Rs 95, we recommended and we had a modest target of Rs 175. We are increasing the target further to Rs 222 because if you see, when Coca Cola came into this pet recycling business with this particular partner, the volumes have almost gone up by 35 percent.""It is the problem that the crude had fallen from USD 80 to USD 30. So, from Rs 500 crore of sales to Rs 640 crore, this is compensated by huge volume growth. Now, the company makes best profit between USD 45 on the lower side and USD 65 on the higher side for the crude because they deal in pet recycling. So, if that happens we feel on the same sales, there will be a 6-7 percent higher realisation. That means, Rs 620-630 crore sales will be Rs 660-665 odd crore for this fiscal because there is no further capacity expansion," he added."But the trigger will be the bottomline where we see almost 50-60 percent jump and if you see the interested parties who have been buying this stock, something like SBI and others. We have been seeing those into disclaimers. This is one stock where there is a lot of potential. And we have changed the entire outlook, because till if you see the subsidiary and others, Coca Cola, JV partner is available at almost at a 12-13 price-earnings ratio (P/E) multiple. This is one stock that can be looked up even from longer longer-term perspective. So, it is a stock which we think is a good portfolio bet at current levels," he said.