Expect 100-150% upside in Unitech: R Shah

Rajen Shah of Angel Broking is of the view that one can expect 100-150% upside in Unitech.

Shah told CNBC-TV18, "Let us rewind the stock markets and go back to 2000, after every bull market ends the leaders of that bull market turn out to be the worst performers, Infosys on the 11th February 2000 was quoting at about Rs 15,000 levels and after that, when that technology bull market ended in a span of about 18 months the stock corrected about 85% from the top to touch a level of about Rs 2100 on September 11th 2001. But from that day onwards if you see what returns Infosys has given till date its about 300% and Unitech did exceptionally well in the Bull market. But today it has corrected about 90% from the top but it doesn’t mean Unitech will go the Infosys way."

He further added, "This company has corrected substantially, the downward to this stock is absolutely nil and I do expect a substantial upside. Fundamentally, its quoting today at a discount of 60% to its NAV, about four times March 2010 earnings and its only in times of utter pessimism but most dismay and disbelief that you get bargains and I think at this level when there is too much of pessimism for the real estate space it makes sense to get into Unitech at current levels. I expect about 100-150% upside of over the next two years."

Source: Moneycontrol