United Phosphorous a good stock to buy: Dilip Bhat, Prabhudas Lilladher

Dilip Bhat, Joint Managing Director, Prabhudas Lilladher, in a chat with ET Now talks about United Phosphorous.

Would you recommend an outright buy for this United Phosphorus?

Sure very much. I think the whole of 2009 this stock has been one of the biggest underperformers. This stock really has a size in terms of profits as well as in terms of top line, a 5500 crore turnover and possibly 550 crores is what they reported. But over next two years I think this profit can go right up to 900 crores and they have geographically very well spread out operations and more importantly they cater to agriculture which I think is really the in thing at the moment where people world over are concerned just to how to increase the productivity and how to save the crops.

So I think this company is very well positioned to capture the opportunity and more importantly, even the balance sheet is really undergoing a good change. They are sitting on a cash of almost about 1500 crores. So this stock probably now has started moving up.