Shailee Shah, analyst at Prabhudas Liladhar discusses Paramount Communications, Bharati Shipyard and KEI Industries and suggests how the investors can play the three stocks in light of the results that the companies have posted for the quarter.
Shailee Shah, analyst at Prabhudas Liladhar discusses Paramount Communications, Bharati Shiyard and KEI Industries and suggests how the investors can play the three stocks in light of the results that the companies have posted for the quarter.
Excerpts from CNBC - TV18's exclusive interview with Shailee Shah:
On Paramount Communications:
We like the power cable industry per se. The power sector has the capex that has been made on the industrial front, or in the housing sector. There aren't too many large players existing in the industry today. So, I think both Paramount Communications as well as KEI industries, would be excellent players for the next one or two years.
On Paramount, we have a price target of around Rs 375-400 with an investment horizon of 12 - 18 months.
On KEI Industries:
After the announcement of the FCCB that KEI was planning, the stock did take a beating and came down to Rs 400. After the results came and the management announced the guidance, we are seeing the stock bounce back again. I think this is only the beginning of another sharp move, another round of momentum in KEI Industries. Our price target on KEI is around Rs 650-675 with an investment horizon of 12-15 months.
On Bharati Shipyard:
Bharati also reported good quarterly results. We are extremely fond of the ship building industry per se. Also, all the international shipyards are booked with deliveries till '08-'09. I think Indian shipyards are going to witness a lot of robustness in the order book, which has already started showing.
We do expect Bharati to report extremely good numbers in '07 and follow it up with an even better growth in '08.
I think all the three companies should grow by at a CAGR of 70-75% over the next two years. They have a potential of 40-50% returns to the investors, on a conservative side.
No disclosures.
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