Bullish on United Phosphorus, keep target of Rs 185: Ajay Bodke, Prabhudas Lilladher

In a chat with ET Now, Ajay Bodke, Head-Investment Strategist & Advisory, Prabhudas Lilladher, shares his views on United Phosphorus Ltd.

ET Now: What is your call on United Phosphorus?

Ajay Bodke: On the midcap side, I would urge you to look at United Phosphorus. On the fundamental basis, our analysts believe that there is lot of value in this stock and one is looking for a target price of Rs 185.

The numbers have also been pretty strong. The major concern that investors had always was the working capital management and how to crunch the working capital cycle. The company had demonstrated over the years that they have been able to restrict the total working capital cycle, bring it down by around 20-25 days from odd 104 to around 89.

Also, the business has started doing quite well. Hence, we are expecting sort of a growth of around 14% in earnings for the current year and ROEs of around 18%. The company is just six times one year forward earnings. So, I would like to look at United Phosphorus.