Book profit in Aptech around Rs 105: SP Tulsian

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Book profit in Aptech around Rs 105: SP Tulsian

Book profit in Aptech around Rs 105, says SP Tulsian, sptulsian.com.

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Excerpts from Closing Bell on CNBC-TV18 Watch the full show » ALSO READ See previous views by SP Tulsian See what other Experts & Brokerages are saying about Aptech See messages about Aptech

Book profit in Aptech around Rs 105, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, "Aptech, I don't see upside going beyond Rs 105. I am taking a valuation of the total company at Rs 700 crore, just to give a breakup, Rs 120 crore cash lying in the books of the company, Rs 280 crore I am taking the Chinese investments, which the company is holding to the extent of 22%, applying a multiple of maybe about 7 times because the average dividend received from that company has been at Rs 40 crore and giving a valuation of maybe about Rs 200 crore for the Indian operations because the company has about 1300 centres in India, but all of them have not been making money, so Rs 15-20 lakh per centre, so that gives a total valuation of close to about Rs 700 crore to the company that translates a price of about Rs 140-142 per share. I think that that is the price the new prospective buyer is likely to offer to the company."

He further added, "If one wants to take a broad range Rs 135-150 could be the range at which the bids are likely to come. Taking that into account 36% promoters stake, maybe 14-15%, the close sources, the open offer is going to come at those price, acceptance ratio of maybe about 50% because this time the open offer will be made for 26% of the public's stake, so taking all this into account, share, I don't think that can really move beyond Rs 105 and since it has already seen those kind of level, which yesterday also I said that I won't be - in fact I will advice to start booking profit at about Rs 105. I am maintaining the same view in the background, which I have just stated."