TIL can move to Rs 700: SP Tulsian

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TIL can move to Rs 700: SP Tulsian

TIL can move to about Rs 700 in next six-eight months time or maybe one year time horizon, says SP Tulsian of 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 TIL See messages about TIL TIL BSE | NSE 31/05/12 Are Mutual Funds betting on TIL?

TIL can move to about Rs 700 in next six-eight months time or maybe one year time horizon, says SP Tulsian of sptulsian.com.

Tulsian told CNBC-TV18, "TIL is the total solution provider to the heavy engineering industries especially in the field of construction, power, material handling and if you see their product profile they are in fact the distributor of the Caterpillar of the earth moving equipments also. For the east and northern part of India they have good collaborations with the global companies for the various product profile."

He further added, "If I go by the financial performance for FY10, the company had posted a topline of close to about 1,050 crore with EPS of close to about Rs 60 and if I take the present performance for nine months they have already achieved the topline whatever they have achieved for the whole year of FY10 has been achieved in first nine months. But there is slight dip in the PAT because in FY10 the PAT was Rs 60 crore for whole year and for nine months the company has achieved a PAT of close to about 40 crore."

"Generally the Q4 of the company is always better with better margin, with better topline. So I am expecting the company to post EPS of close to about 55-56 for FY11 but FY12 is likely to be quite good because the order flow which company has been seeing in the last three months or so will give them the better margin in the time to come."

"If I presume an EPS of close to about Rs 70 for FY12 the share is ruling at about Rs 500 which translates into a PE multiple of 7 and even if I go by the historic PE multiple, it is ruling below 10 and generally these kind of companies have been traditionally ruling at a PE multiple of close to about 15-16 times. So I don't think that you have any downside on this stock but on the upside the stock can move to about maybe Rs 700 in next six-eight months time or maybe one year time horizon."