TRF can multiply your capital in long term: Rajen Shah, Angel Broking

In a chat with ET Now, Rajen Shah, Chief Investment Officer, Angel Broking, talks about TRF.

Anything in the infrastructure sector that you like?

There is one company and a very quality management manages this company that is TRF. Tata Robin Fraser was the formal name of this company and it is currently quoting at about 365-370 levels and this is looking very interesting actually. This stock exactly about a year back or so was quoting at about Rs 1100-Rs 1150 and currently it quotes at about 365. Now there were certain accounting errors which happened actually in one of its subsidiaries internationally and that has been taken care of last year and that is why the company reported a very poor numbers.

But now that is a thing of past the company has started back on a firm footing. The management is very confident that in the next three to four years the turnover of this company should double from about 1100 crores currently to about 2500 crore and my estimate is that in 2014-2015 it will report about 2500 crore.

This is a company which is into material handling business and which does very well when the infrastructure activity in the country picks up because it is into various kinds of construction equipments and all this is related with infrastructure development. Now in 2014-2015 when this company will report 2500 crore of revenue, it will have all the potential to report about Rs 60-Rs 70 kind of earnings and at Rs 60-Rs 70 kind of earnings the Tata Group company can easily trade at about Rs 1000.

If you looking for a multibagger in the infrastructure space and if you have got patience for about three to three and a half years I think this stock can really multiply your capital.

Any disclosure you would like to make?

Well most of the stocks which I recommended in the show we own in our Lotus fund actually. Certainly we do hold and we have been recommending the stocks to our clients and PCGs and all that.