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Hilton Metal looks expensive: SP Tulsian
SP Tulsian of Premium Investments says that he is not at all impressed with the Hilton IPO stock and definitely it looks expensive. He feels the valuation is close to 16-17 times or probably 18 times , particularly because, the profitability is quite low; at about 10%.
SP Tulsian of Premium Investments says that he is not at all impressed with the Hilton IPO stock and definitely it looks expensive. He feels the valuation is close to 16-17 times or probably 18 times , particularly because, the profitability is quite low; at about 10%.
Excerpts from CNBC-TV18's exclusive interview with SP Tulsian:
A: It's a very small company, if you see their profitability also, its nothing exciting; the equity of 12.20 crore, the issue price of Rs 70, the profit margin of about 10%, EPS of Rs 3.
That means, even if I take their call which they have given for FY08; probably would end up in an EPS of about Rs 4.
So that gives a valuation of close to 16-17 times or probably 18 times because for smaller company, you cannot give this kind of valuation where the profitability is also quite low at about 10%. So I am not at all impressed with the stock and definitely it looks expensive at these levels also.
A: It's a very small company, if you see their profitability also, its nothing exciting; the equity of 12.20 crore, the issue price of Rs 70, the profit margin of about 10%, EPS of Rs 3. 
