Bihar Tubes has target of Rs 108: VK Sharma

1270 Investors following APL Apollo Tubes. Share this News with them.

0

Like this story, share it with millions of investors on M3

Bihar Tubes has target of Rs 108: VK Sharma

Bihar Tubes has target of Rs 108, says VK Sharma of HDFC Securities.

Post your opinion here

 

0

Tweet

Share on Tumblr

ALSO READ See previous views by VK Sharma See what other Experts & Brokerages are saying about APL Apollo Tubes See messages about APL Apollo Tubes APL Apollo BSE | NSE 31/05/12 Are Mutual Funds betting on APL Apollo?

Bihar Tubes has target of Rs 108, says VK Sharma of HDFC Securities.

Sharma told CNBC-TV18, "Bihar Tubes is essentially a company which is into steel pipe business and it has four factories. The newest of them is coming up near

Bangalore. Although it is in Tamil Nadu, it is essentially near Bangalore. So these factories are going to change the fortune of the company because it is coming up with high speed Japanese technology and that should enable this company to make pipes which are as per API specifications."

He further added, "Going by the past quarter, I think this quarter should see further ramp up in sales and therefore we would see an EPS of around Rs 20 for the current year ending March 2010. For the next year, I understand that a part of the mill has already gone into production, trial runs, so that should add 50% more to the turnover of the company in terms of bottomline of the company. Currently it quotes at 5 PE, so taking that into consideration the PE comes to less than 3.5."

"The current market cap to sales of this particular company on existing sales is almost 0.3 where the industry peers quote at almost 0.8 to 1, one time sales. There is room for appreciation for the stock and once Rs 110 is crossed the stock could go further up.One can buy Bihar Tubes with a target of Rs 108."

At 11:58 hrs the share was quoting at Rs 104.50, up Rs 2.45, or 2.40%. Yesterday the share closed down 0.83% or Rs 0.85 at Rs 102.05. Market capitalisation stands at Rs 212.10 crore.

The company touched its 52 week high Rs 109.35 and 52 week low Rs 31.50 on 20 Jan, 2010 and 25 Mar, 2009, respectively. Currently, it is trading -4.44% below its 52-week high and 231.75% above its 52-week low.  

The company's trailing 12-month (TTM) EPS was at Rs 3.65 per share. The stock's price-to-earnings (P/E) ratio was 28.37. The latest book value of the company is Rs 90.51 per share. At current value, the price-to-book value of the company was 1.14.