Smartlink is a lovely stock: Mehraboon Irani, Nirmal Bang Securities

Mehraboon Irani, Principal & Head-Pvt. Client Group Business, Nirmal Bang Securities, in a chat with ET Now, gives his views on Smartlink



What about the target in SmartLink?

SmartLink, I would say possibly in terms of the stock price, maybe we would possibly see another 3-4% appreciation, not more. This is a stock, which was Rs 80 just some days ago. The company was sitting on huge cash after selling off its Digilink business. The fact is whether they declare Rs 15-20-30 whatever dividend per share, this dividend is not going to be the last dividend. I am quite confident the company will go on giving last doses of dividend over the next 3-6-9 months.

There will be one or two interim dividends again coming, and I will not rule it out because I know these other businesses that the company has, which is Digicare and Digisol. You do not require too much of capital infusion in it, promoter is holding 68%. What will you do with this cash ultimately in the business, so this cash is ultimately going to be distributed to the shareholders. This is the company, which will keep on going up. Ex-dividend it may come to around Rs 70.

Next dose of dividend coming, again the stock may go to Rs 80-85, you buy at Rs 102, sell at Rs 70. Again re-enter, take advantage of the dividend, take advantage of the tax sheet. This is a lovely stock to be had in the bad times. You get a good dividend coming to you, its tax free, the share comes down, you buy more. Next dose of dividend comes, the share goes up, sell off your own shares. This is the stock to be in.