Buy Escorts; target 230: Pankaj Pandey

Pankaj Pandey, Head of Research, ICICI Direct in an interview with ET Now talks about Escorts.

From a near-term strategy, how much upside do you see in the Escorts stock?

For Escorts, we have a target price of 230, so there is a fair good amount of upside because for Sensex, we are expecting an upside of about 16% odd.

Plus this stock can do well in terms of various triggers it has going forward in terms of construction business picking up better than expected. You have monetisation plan, which has been talk of the town for quite sometime, that might happen, may not happen but that is also a trigger to the stock and plus it is trading at about 20% discount to M&M's core business, so that comfort also comes in the form of valuation also. This stock is our pick for 2011 among mid-caps, so we continue to be positive on the stock.