Check out: 2 sectors Tulsian is betting on for good returns

Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See what other experts are saying about markets See what FIIs are saying about the markets See what Udayan Mukherjee is saying about the markets Rel Ind Infra BSE | NSE 31/05/12 Are Mutual Funds betting on Rel Ind Infra? Other Stocks in this news Sunil Hitech Engineers | Siyaram Silk Mills | Bharat Heavy Electricals | Reliance Energy Ventures |

In an exclusive interview with CNBC-TV18, SP Tulsian of sptulsian.com citied his multi-bagger midcap stock ideas for the day. He has picked Reliance Industrial Infrastructure  and Sunil Hitech  from the infrastructure space and Siyaram Silk Mills  from the textile space. He sees these stocks fetching good returns ahead.

On Reliance Industrial Infrastructure

Reliance Industrial Infrastructure is a company belonging to Reliance Group in which Reliance Industries is directly holding 45.45% stake. This company came into the fold as promoter by Reliance Industries about 5 to 6 years back.

Since then there has been the flat performance. This is because the company is owning about 56 kilometer pipeline which transports the crude from Chembur to Patalganga. That is the reason why the company identical top-line and bottom-line with EPS close to Rs 15 every year. This has been lying low with market cap of less than Rs 1,000 crore.

There have always been expectations that this company will get activated by Reliance Industries. The value accretion game may start because the company which belongs to Reliance Industries with market cap of less than Rs 1,000 crore cannot remain at those levels.

The trigger has really started, we have seen that Reliance Group has acquired 74% in Bharti AXA Life and Bharti AXA General Insurance with 17% having acquired by this company. This company presently has networth of about Rs 200 crore of which about Rs 160 to 170 crore is laying as cash in bank balances with the company.

The process of putting in other businesses in the company has started. If insurance may not come in a full fledged way we will see these kinds of new businesses coming into the company. I am quite hopeful as a value creation game by the group. One does not know maybe the similar other projects can come in a smaller way.

That is the reason, with EPS of Rs 15 that translates into a PE of 30-35 which the share has been ruling for ages. For years this has been ruling at 30-35 mainly on this hope.

The hope of this has started with the 17% stake of Bharti AXA and I hope that this can really be a big trigger for the company. Going forward if somebody can keep a view of about one year share can move to anywhere between Rs 750 to Rs 1,000 I am giving a broader range so that is the trigger.

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On Sunil Hitech

Sunil Hitech is mainly catering to the power producers. They are providing erection and creation of structures for power projects, boilers, coal handling plant, handling fuel liquid and solid both coal and liquid fuel both. In FY11 they had better performance than FY12.

They had an earning before interest of 17% for whole of FY11 which was a 12% for FY10. The EBITD of Q4 that is place at about 20% against 13% or 14% for the corresponding quarter of the previous year.

Talking about the whole year's performance top-line is close to about Rs 750 crore, EPS is at Rs 27, cash EPS is at about Rs 46-47. Going by this, the share is ruling at a PE multiple of less than 4. The book value of the share is ruling at about Rs 190-192. The share is available at a price to book of 0.65.

Considering the new power generation capacity that they have created. The company's client list includes Vedanta, Jindal, Reliance Energy , BHEL , State Electricity Board. Their order flow is quite strong.

They should be able to maintain their margins of EBITD of about 16-17% for the whole year. One can expect  the top-line and bottom-line growth of least of 20% on year on year. So, with these financials in place I don't think that share has any downside on the lower side. One can expect a price of Rs 150 in the next four to six months time.

On Siyaram Silk Mills

In the recent past we have seen that all textile stocks have started moving up. Talking about their business profile, it is an integrated company. For FY11, the company has posted the record performance with top-line of about Rs 840 crore, EPS of about Rs 62 and cash EPS of Rs 84 to 85.

FY12 is likely to be the better year, though FY11 has been the record performance for the company's history. If you see the share price performance of Alok Textile or S Kumars or other textiles stocks, amongst all these Siyaram Silk has the best financials, best fundamentals.

The present market cap of the company is less than Rs 400 crore with a turnover to market cap ratio of 0.5. I said that FY12 is likely to be better. I am expecting that company should be able to post an EPS of Rs 70 with cash EPS of 90. Talking that into consideration the share is ruling at PE multiple of 5 to 5.5 based on FY12 earnings.

If you are expecting the Reid and Taylor IPO to hit the market. Their expected market cap is close to about 1 billion dollar, so,  I don't think that investors will really overlook and will not take a call on this stock as well.

The fundamentals are quite strong. The upside seems to the extent of about 30 to 40% in the next six months or so. One can expect a price of Rs 550 to Rs 600 in this period. As I said the financials and fundamentals are quite strong.