Buy Tata Global: Vivek Mahajan

Vivek Mahajan, Head-Research, Aditya Birla Money in an interview with ET Now talks about Tata Global.

What’s the sense on the entire FMCG pack, particularly the mid-cap space, the likes of Nestle, Britannia, any of these counters?

Actually Nestle, Britannia, I believe everything has gone up, expectation is that good monsoon, good demand expected to come from the agri space. Domestic consumption story continues to move up, a safe haven at this point of time. We like Tata Global, again a Tata Group company where we believe it is quoting at 1.3 times price to book, which is at a significant discount to the peer group companies.

As far as the company is concerned, a lot of new products are there in the pipeline, particularly in the health and wellness space. The company has in the past grown through acquisitions, planning to make a placement of equity to some private equity investors. We expect the company to report an EPS of Rs 9 or thereabout next year quoting at 15 times expected earnings. We think this stock could have a potential of Rs 160 or thereabout in next one year’s time.