SP Tulsian, sptulsian.com feels that Sanghvi Movers has target of Rs 200.
Tulsian told CNBC-TV18, "Sanghvi Movers is a very interesting play. They are the largest crane hiring company in the country. Third largest in Asia and 9th largest in the world. They have fleet of 356 high duty hydraulic crawler cranes. They had a topline of Rs 360 crore. That means each crane has given them an average revenue of Rs 1 crore per year. Their PAT margin that is at about 24% while cash profit margin is closed to about 53%. They have posted an EPS of close to about Rs 20 with cash EPS of Rs 44."
He further added, "So if you take that into consideration since I said that the company has huge cash flow flowing every year to them they have recently completed an expansion of Rs 300 crore. I am expecting that that will start yielding good results or good performance to the company from this financial year 2012 onwards. So the share is ruling at a PE multiple of maybe about 4 based on FY12 performance and at a cash PE multiple. As I said the cash profit is almost 120% of the profit-after-tax. So the share is ruling at a cash PE of close to about 2.2 or 2.25. So, I don't think that there are chances of any downfall. But, if one can keep a view of about 1 year on this stock he should be able to see a price of Rs 200."
