Buy United Phosphorus; margin of safety is very high: Sandeep Singhal, Emkay Global Financial Services

In a chat with ET Now, Sandeep Singhal, Co-Head Institutional Equities, Emkay Global Financial Services shares his views about United Phosphorus.

ET Now: Why do you like United Phosphorus?

Sandeep Singhal: United Phosphorus is a global agri input company and over the last four quarters they have reduced their dependence on Europe and increased it to the emerging markets. Now Brazil is also contributing a lot. So that derisking model would help them and they have fantastic cash on their book. They are ready for an acquisition to see opportunities across in emerging markets. It is about 5-6 PE and margin of safety is very very high. That is the reason why we are recommending it.