Buy Supreme Industries; target 225: Avinash Gorakshekar
"We have been recommending selective stocks like Supreme Industries which we as a house have recommended the stock at around 165 odd."
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| Updated: Avinash Gorakshekar, VP Research, Edelweiss Financial Advisors in an interview with ET Now talks about Supreme Industries.
What are you recommending to clients this morning?
Clearly this is a very short term bounce. So we have been telling our clients that especially from the interest rates sensitives, keep away. The infrastructure space, the reality space and the auto space, these are 3 pockets where possibly we are going to see bad numbers coming up for the first quarter of this financial year and more importantly in select midcaps, we have been telling people to actually put their money because the discount now from midcaps vis-à-vis large caps is quite significant.
In some cases, it is about almost 50-60%. So we have been recommending selective stocks like Supreme Industries which we as a house have recommended the stock at around 165 odd. We are looking at a target price of 225 in a year's time. Clearly the company has got a very strong earnings trajectory ahead.
More importantly it is a market leader in its space and despite the fact that the stock is not very liquid, the fact remains is that from a midcap space, one could possibly look into this company because more importantly, the plastic processing space, they have always been the pioneers. So this is one stock which we have been recommending.
What are you recommending to clients this morning?
Clearly this is a very short term bounce. So we have been telling our clients that especially from the interest rates sensitives, keep away. The infrastructure space, the reality space and the auto space, these are 3 pockets where possibly we are going to see bad numbers coming up for the first quarter of this financial year and more importantly in select midcaps, we have been telling people to actually put their money because the discount now from midcaps vis-à-vis large caps is quite significant.
In some cases, it is about almost 50-60%. So we have been recommending selective stocks like Supreme Industries which we as a house have recommended the stock at around 165 odd. We are looking at a target price of 225 in a year's time. Clearly the company has got a very strong earnings trajectory ahead.
More importantly it is a market leader in its space and despite the fact that the stock is not very liquid, the fact remains is that from a midcap space, one could possibly look into this company because more importantly, the plastic processing space, they have always been the pioneers. So this is one stock which we have been recommending.
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