SP Tulsian of sptulsian.com is of the view that Sunil Hitech Engineers has target of Rs 150.
Tulsian told CNBC-TV18, "Sunil Hitech is mainly catering to the power producers. They are providing erection and creation of structures for power projects, boilers, coal handling plant, handling fuel liquid and solid both coal and liquid fuel both. In FY11 they had better performance than FY12. They had an earning before interest of 17% for whole of FY11 which was a 12% for FY10. The EBITD of Q4 that is place at about 20% against 13% or 14% for the corresponding quarter of the previous year. Talking about the whole year's performance top-line is close to about Rs 750 crore, EPS is at Rs 27, cash EPS is at about Rs 46-47. Going by this, the share is ruling at a PE multiple of less than 4. The book value of the share is ruling at about Rs 190-192. The share is available at a price to book of 0.65."
He further added, "Considering the new power generation capacity that they have created. The company's client list includes Vedanta, Jindal, Reliance Energy, BHEL, State Electricity Board. Their order flow is quite strong. They should be able to maintain their margins of EBITD of about 16-17% for the whole year. One can expect the top-line and bottom-line growth of least of 20% on year on year. So, with these financials in place I don't think that share has any downside on the lower side. One can expect a price of Rs 150 in the next four to six months time."
