Seamec may test Rs 125 in short term: Aashish Tater

Aashish Tater of fortunewizard.com told CNBC-TV18, "The entire shipping sector has started moving up. We like Seamec. For all these years, they have either one or two vessels that was in dry docking facility. But this year, they will be operating at full capacity and they will generate somewhere around Rs 55 crore profit on Rs 320 crore market cap. If you see the entire pattern, there has been change of hands - 75 percent has been taken by HAL from the French promoters. They have also gone for a buyback cancelling the shares. So, now on reduced equity, Rs 55 crore of profit is coming, this is one stock that can be definitely looked on given that other stocks, Mercator and all have started moving and they have got rerated." "In fact Mercator yesterday, made a new 52-week high. That is why it came on to the breaking consolidation pattern. After a long time, it has closed in this region. So, we feel this will be another stock that will be testing its 52-week high which is close to Rs 125-127 odd levels over the next three months. So, this is one stock where risk reward looks attractive," he said."Fundamentally also, once all the dry docking thing is not there for this year, the PAT will zoom very fast. Even if you see the EPS because they charge very high depreciition, Rs 10 per share is the depreciation per share which is carried back. So, if you add that, we feel Rs 30 of cash earnings per share, this is very attractively priced P/E multiple going forward. So, this is a huge rerating candidate where we have a very short-term target of Rs 125," he added.