Apurva Shah, VP & HOR, Prabhudas Lilladher is of the view that Asian Electronics can double from current level. It is a bit of a high risk high return kind of a stock because their core business continues to do well which is of the lighting business and that is easily growing at about 25% CAGR. Recently they won some smart orders; they have an order book of almost Rs 650 crore which is good for the company of their size, he added.
Shah told CNBC-TV18, "Asian Electronics is a bit of a high risk high return kind of a stock because their core business continues to do well which is of the lighting business and that is easily growing at about 25% CAGR. Recently they won some smart orders; they have an order book of almost Rs 650 crore which is good for the company of their size and this is executable over the next 12-14 months."
He further added, "They have a good lighting business going on. They recently did an acquisition of a company, which has certain technologies and patterns for the conversion of waste plastics into diesel oil. So in this they have an order book of about Rs 50 crore for this equipment, which should also be executable in the next six months."
"Besides they have a lightly joint venture with HPCL that could come up in the next six months. We are not building anything much from that but that could be huge for the company. So even if one does not account much further, HPCL possible joint venture even apart from that I think the company likely to go ahead more then 70-80% earnings growth over the next two-three years and at 10-11 times forward earning still cheap. I think it can easily double from here."
Source: MC
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