Euro Multi closes below issue price, targets EPS of Rs 12

Euro Multivision ended its first trading session below its issue price of Rs 75. It closed at Rs 51.85 on the NSE, at a huge discount of 30.87%.

The share touched an intraday high of Rs 80.70 and an intraday low of Rs 51.65.

Hitesh Shah, Managing Director, Euro Multivision, says the company is targeting an EPS of around Rs 10-12.

Here is a verbatim transcript of the exclusive interview with Hitesh Shah’s on CNBC-TV18. Also watch the accompanying video.

Q: You are getting into the solar cell manufacturing space, something which Moser Baer did and not to great affect – are you sure you want to get into that space given how this business is panning out globally?

A: This is a new era of the new energy sources in renewal sources that photovoltaic is one of the major solar sources going for the renewable in this space. This industry is growing on. If you look at the last five years, it has grown by 35% year on year.

If you talk about Moser Baer, I do not know more about its strategy, but as far as my business strategy, we have a very good business strategy in that. For that business, we are also going for backward integration for the future.

Overall, it has a very good future, energy is the major concern. Renewal has become one of the major sources for everyone right now, as global warming has become a very big issue. So, in that space, the solar is going to play a very major role.

Q: Our estimates are that you finish this year up with a Rs 102 crore in revenues is that a doable target and what would that mean in terms of an earnings per share (EPS) for you?

A: We are looking to start from January itself. We are targeting our EPS at around Rs 10-12.

Q: Your debt levels are staggering and you have got a debt of Rs 192 crore on your books, which mean that your debt equity ratio is at 6.1 times – any plans to scale that down?

A: Its after the issue money coming in the books, that the debt ratio has come down by almost 1:2.

Q: So this Rs 10-12 earnings per share you are talking about is it for fiscal year 2011 and what is the profit in rupees crore that you are talking about there?

A: As far as the numbers are concerned, I am not able to give you the numbers, because of the regulatory concerns. But this will be on the full year basis, it might be an increase in earning per share also.