Lloyd Electrical has target of Rs 80: Tulsian

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Lloyd Electrical has target of Rs 80: Tulsian

Lloyd Electrical has target of Rs 80, says Investment Advisor, SP Tulsian.

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ALSO READ See previous views by SP Tulsian See what other Experts & Brokerages are saying about Lloyd Electric See messages about Lloyd Electric Lloyd Electric BSE | NSE 30/05/12 Are Mutual Funds betting on Lloyd Electric?

Lloyd Electric has target of Rs 80, says Investment Advisor, SP Tulsian .

Tulsian told CNBC-TV18, "Lloyd Electric is the maker of heat exchanger coil, which is hard for any air condition unit. Apart from that they are making the AC units for the railway coaches and making the split and window AC also with a capacity of about 3 lakh unites per annum. Presently the company has two plants. If you see the financial performance over FY09 for first nine months the company had a topline of close to Rs 500 crore with a PAT of Rs 28 crore. The equity base is close to about Rs 31 crore, so that translates in to a earning per share of Rs 10 for nine months of FY10."

He further added, "If you extrapolate the same figure the company should be able to post an EPS close to Rs 14 on consolidated basis for FY10. The kind of demand which we have been seeing for this unit even on the railway front and even in the air conditioner fronts, I think FY11 will really be a big booster for the company because as I said that they have been on with their HP projects just couple of years back and then that will start contributing to the working of the companies. So FY11 I am expecting an EPS of close to anywhere between Rs 18 to 20."

"The share is ruling at around Rs 72. If you go by the historic earnings it is ruling at a PE multiple of close to Rs 5 and if I go by the forward earning it is ruling at a PE multiple of Rs 4. Apart from that the present book value of the stock is Rs 130. That means price to book, the share is available at 0.6 times and I do not think that any stock whether in this category if you compare they are ruling in a single digit PE multiple."

"The customers of the company or the companies OEM supplier for all the AC makers whether you talk about Blue Star, Voltas, Samsung, LG, Carrier, all the AC makers are buyer of heat exchanger coil, which is a critical part for any air conditioner unit. So if somebody can really take a call on this stock with a view to 6 months though the stock has been included into today's show with a day target of Rs 80 but as I said with a PE less than 4 on the forward earning and maybe on the historic earning it is at 5 price to book of 0.6, I do not think there is any downside. But on the upside I am expecting the share to move maybe to 80-100% over next 6 months but for the day target it has been given a target of Rs 80."

At 11:32 hrs the share was quoting at Rs 77.10, up Rs 5.00, or 6.93% with volumes of 976,413 shares. Market capitalisation stands at Rs 239.01 crore.

e company's trailing 12-month (TTM) EPS was at Rs 9.17 per share. The stock's price-to-earnings (P/E) ratio was 8.41. The latest book value of the company is Rs 119.69 per share. At current value, the price-to-book value of the company was 0.64.