Positive on DQ entertainment: Centrum Wealth Managers Ltd

Mehraboon Irani, senior VP - PMS, FCH - Centrum Wealth Managers Ltd, in a chat with ET Now talks about DQ entertainment and IL&FS Transportation Finance.

What about DQ entertainment and IL&FS Transportation Finance if you track both the issues?

I think DQ Entertainment like may be a Dan Networks or a Hathway cable would be a company which I would definitely look at, concept wise, business wise if the business does well. Management is good so far they approved themselves. If the business is good - which I feel it is good - and ultimately if it clicks, I think this could honestly-honestly be a multibagger over the next three to four years but that is definitely a little bit of a risk elements.

At the present level I think people should not be bothered too much about what is going to happen to the stock or what is going to happen to business in the short run. This is a concept story. The animation part - if you buy into it - wait for it to take off. If it really takes off well, possibly you have a multibagger on your hands. So DQ Entertainment I am very positive on it as a concept stock which should be there in somebody’s portfolio.

As far as that listing which took place today at the present level honestly, there is nothing much to defend the valuations. I think may be people were expecting a price of around Rs 290-300 for IL&FS but at the end of it on at the present level also, I don’t think one should be going and buying into the stock because if you look at an earnings of around Rs 11 to 12 at the present level, you have the stock at around 25-26 times. So even if you have an earnings of around 25% coming next year, the stock honestly looks a little bit expensive to me. So while investors, who have been allotted the shares, can possibly hold on to 25%-30% of their holdings, I don’t think somebody should be looking at buying it at the present level because to buy into the counter you have to believe in the story and at the valuation at which it is right now, I don’t think there is much of money to be made at least over the next three to six months.

So I would honestly allow the stock to pass at the present level. The issue was decent, listing is decent - that’s all. Buying at the present level - honestly I wouldn’t consider