Peninsula Land can touch Rs 50: SP Tulsian

Tulsian told CNBC-TV18, "Peninsula Land is Ashok Piramal Group Company. If you see the last four years track record of the company, they have really earned the good name as a quality developer by developing two of their residential projects in Mumbai, one is Ashoka Tower and second is Ashoka Garden. Both are in central Mumbai. All are really fascinated and excited by the quality work by that group."

He further added, "Because of that good response, the group has become little aggressive. They have started moving out of Mumbai as well. Many of the projects have already been launched by them. They have presence in Mumbai, Pune, Nasik, Goa, and Bangalore."

"The company is likely to acquire 14 acre plot very close to Ashoka Garden in Sewri. That announcement is likely to happen maybe in next 15 days or so. If that happens, 14 acre square feet can give them about maybe 15-20 lakh square feet of sellable area. That will be seen as a very big positive for the company."

"If you go by the financial track record, annually they have been posting a topline of close to about Rs 500 crore with bottomline of about Rs 150 crore and profit after tax (PAT) margin of close to about 30%. They have consistent performance."

"Generally, this company is not seeing so leveraged as we have been seeing in case of other real estate company with net worth of close to about Rs 1,650 crore, which translates into book value per share of Rs 60 and about Rs 150-160 crore PAT every year. That translates into an EPS of close to about Rs 6."

"The share is ruling at a PE multiple of maybe 7-7.5 time and price-to-book of maybe about 0.6-0.65. Taking all into consideration, I am giving a conservative estimate of about Rs 50 in the next six months or so."

Disclosure: I have no personal holding in the above stock.