Globus Spirit and Orient Paper look attractive: Hemang Jani

Hemang Jani, Senior Vice President, Sharekhan in an interview with ET Now gives his perspective on Globus Spirit and Orient Paper.

You have two very interesting picks Globus Spirit and Orient Paper, what’s your thought process?

Well on the Globus Spirits we feel that the second tier spirit companies are doing pretty well. Companies like Globus Spirits, Tilaknagar and few others. There is a huge valuation gap between United Spirits and some of these guys and looking at the kind of capacity built up and the kind of spread that they have we feel that overall earnings growth is going to be about 30% to 50% and some of these companies have also raised funds very recently to take care of their expansion plans.

So we feel that these companies would give good upside of 20%-25% even in the short run. So we like Globus Spirit from that perspective. Orient Paper essentially is a cement company. Their paper division is not doing well but the expectations are there, there is some kind of stability in the paper prices. Their plants now coming back into operations, the company should do well. They have a electrical division also which is reporting a healthy growth and one of their power plants 25 megawatts is going to be on stream from 3 quarter of 2010 it’s a very cheap company so from valuation perspective its looking very attractive.