DIC India has target of Rs 350, says SP Tulsian, sptulsian.com.
Tulsian told CNBC-TV18, "DIC India are makers of printing ink and they have seven manufacturing plants, all located in the metros - Delhi, Calcutta, Chennai, Mumbai. Since the metros have good consumption and considering the demand for printing ink in packaging and so many other things, they have virtually been a leader."
He further added, "This company has their year-ending in December and for 2011 which they have just finished, they have declared their results with topline of close to about Rs 700 crore and EPS has been very robust at about Rs 28-29. Being a multinational company, a couple of months ago, there was talk that probably this could be a delisting candidate. But I won't rely on that news or on that move so much because the promoters are holding 72%."
"If you purely focus on the financial performance, it is close to about Rs 30 EPS and the company has its book value close to about Rs 290 for this year as on 31st December, 2011. That means the stock of a multinational company is available at 0.9 times book value, and as I said that the PE-EPS is close to about Rs 29 for calendar year 2011. So, one can expect an EPS of close to about Rs 34-35 for calendar year 2012. That translates into a PE multiple of close to about 7.5-8 times."
"Taking all these into account, this stock is looking very good. If someone can keep a view of about three years, sooner or later if the delisting news comes in, a price of Rs 500-600 can also be expected, but I have taken a price target of Rs 350 on next 12 months or so."
