Published on Mon, Jul 09, 2007 at 16:19 | Source : Moneycontrol.com
Updated at Tue, Jul 10, 2007 at 13:07
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Simplex Projects an average issue: Tulsian
Investment Advisor, SP Tulsian is of the view that Simplex Projects have shown good performance for FY07, their profitability has been slightly better than the industry peers but again the equity of Rs 9 crore and turnover Rs 140 crore that doesn’t definitely enthuse the performance. It is just an average issue.
Investment Advisor, SP Tulsian is of the view that Simplex Projects have shown good performance for FY07, their profitability has been slightly better than the industry peers but again the equity of Rs 9 crore and turnover Rs 140 crore that doesn't definitely enthuse the performance. It is just an average issue.
Tulsian told CNBC-TV18, "Simplex Projects, people probably got excited by the Simplex Infrastructure. They are same family but no connection with all those things. This is a construction company in which you get atleast 40 listed stocks where they are available at a PE multiple of close to 10 or maybe in the single digit as well if you take the forward earning call. What is such a great thing to get excited about all these issues whether Roman Tarmat or Simplex Projects."
He further added, "In this case they have shown good performance for FY07, their profitability has been slightly better than the industry peers but again the equity of Rs 9 crore, the turnover is Rs 140 crore that doesn't definitely enthuse the performance. Because whatever profitability ultimately will come from the project execution and that has to be atleast if I say 20 times of your equity. The expanded equity of Rs 12 crore I don't how far that justifies. So it is just an average issue not too exciting at a PE multiple of close to 14-15 which I have been taking a call probably for Roman Tarmat also. I won't rate Simplex Project to be very high saying that ok this is a very extra ordinary issue and you get a very huge upside on the fundamental basis. This is again a average kind of construction company."
Tulsian told CNBC-TV18, "Simplex Projects, people probably got excited by the Simplex Infrastructure. They are same family but no connection with all those things. This is a construction company in which you get atleast 40 listed stocks where they are available at a PE multiple of close to 10 or maybe in the single digit as well if you take the forward earning call. What is such a great thing to get excited about all these issues whether 
