Greaves Cotton can touch Rs 110: SP Tulsian

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Greaves Cotton can touch Rs 110: SP Tulsian

Greaves Cotton can touch Rs 110 in next 10-12 months time, says SP Tulsian, sptulsian.com.

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

Greaves Cotton can touch Rs 110 in next 10-12 months time, says SP Tulsian, sptulsian.com.
Tulsian told CNBC-TV18, " Greaves Cotton has been maintaining their result performance. The quarter on quarter results have been either maintained or there has been sequential growth of about 1-2% on the topline and bottomline. If you see the second quarter results, which came on Friday has been very good. If you take a call for the first half of the companies working they are making the product profile of diesel engines but apart from that they are making petrol engines, gensets, road construction and infrastructure equipment, the product profile of that segment is very low. The diesel engine constitutes about 75% to 80% of the product portfolio of the company."

He further added, "Considering the consistency of the financial performance; Rs 850 crore turnovers in the first half with an EPS of about Rs 3 for first half, I think this is a very good investment and the company has been very consistent in declaring the quarterly dividend. They have already declared 20% two dividend of each that means 40% in two interim has already been given. The similar kind of two more interim dividends are likely to come in the remaining 6 months."

"I think this is an ideal investment. One should not expect too much upside from hereon. One can look for a price of Rs 105 to Rs 110 in a period of about 10-12 months. This is a consistent stock where downside is seen very limited. I don't think that this can really fall below Rs 80 under any eventuality. But even if it falls to those levels it will quickly bounce back and over a 10-12 months period I am expecting a price of about Rs 110, so this is an ideal consistent stock for the portfolio."