TRF may test Rs 800, says Rajen Shah

Rajen Shah, CIO of Angel Broking told CNBC-TV18, "TRF is one stock which we feel could be a multibagger over the next few years. Four years back, the stock was quoting at about Rs 1,100-1,200. Now it is quoting at about Rs 225. It is a Tata Group company, quality company available at a marketcap of just Rs 250 crore.”

He further added, “It is into bulk material handling business, caters to power sector, coal sector, mining sector, steel sector and the government is talking aggressively for all the sectors. They should do exceptionally well and if they do well, obviously this company which makes bulk material handling equipments for all the sectors should do extremely well.”

“This company is in loss but I think it is a matter of time before it turns. Over the next three-four years, it will not only regain its lost glory but also touch its previous peak of almost Rs 1,000. We see a 300 percent upside. The revenue of this company is Rs 1,100 crore and in next four years we are expecting Rs 2,000 crore. You take 2.5 percent net profit margin, which it has in the past, you are talking about an EPS of Rs 50. At 15-16 P/E multiple, the stock can go to Rs 800 levels, nothing much to lose in the stock. I think it is a multibagger in the making,” he added.