GTL can move to Rs 55- 60, says SP Tulsian

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GTL can move to Rs 55- 60, says SP Tulsian

GTL can move to Rs 55- 60, 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 GTL See messages about GTL

GTL can move to Rs 55- 60, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, "GTL, I don't know why this restructuring has really been holding on and now we get to hear that personal guarantee of Rs 2,500 crore given by the promoter. I really wonder whether that personal guarantee will serve that purpose because ultimately all the lenders have to fall back on the assets of the company, which are in my view quite adequate if you take the 30,000 towers, which are now held by the company, the value of that can be taken at about Rs 12,000- 12,500 crore that's a least valuation and if you see the exposure of all the lenders put together is at about somewhere around Rs 9000- 10000 crore and in fact the transfer of ICICI Bank loan from GTL to Chennai Network are all just falling that on the principal security."

He further added, "All this into consideration, but this very good in fact for combine for both the companies that is GTL Limited and GTL Infra and if you see now the GTL Limited is having very low market cap of close to about Rs 300-350 crore while GTL Infra has a market cap of close to about Rs 800 crore. I think on both the accounts because always I have been combining both these companies together. So collectively one can expect that probably GTL can move to about Rs 55- 60. GTL Infra can move to about maybe Rs 14-15 that means there is good upside from hereon because as I said after knocking off the debt of about Rs 10000 crore they are left with the asset valuation of Rs 2500 to Rs 2800 crore. So market should logically give a valuation of about Rs 1500 to Rs 1800 crore of both this companies put together on a market cap basis, which translates into this price of Rs 55-60 and about Rs 14-15 for GTL Infra."