Buy United Phosphorus with a target of Rs 250: Rajen Shah

In a chat with ET Now, Rajen Shah, Chief Investment Officer, Angel Broking, shares his views on United Phosphorus.

What is your call on United Phosphorus?

Yes, certainly, in fact this is not started the upside in United Phosphorus is 100% intact. Yesterday the management bought 18 lakh shares at about 123-125 levels. They bought back so when they are buying 18 lakh shares in a day actually that is a disclosure on the NSE site, national stock exchange site, they were buying 18 lakh share at about 123-125 in one single day that talks about the value they see in the stock. We have a target of Rs 250 for United Phosphorus and as I said 100% upside in 12 months is very much possible.

It is not difficult. You see the valuations, it is quoting at even at this price of 125, the stock is quoting at less than 9 times the earnings. You see rally is the kind of valuation it is quoting at, you see Bayer Cropscience so sooner or later the market has to give it what it deserves, a better PE multiples and that would happen over the next 12 months.