SP Tulsian, sptulsian.com is of the view that Voith Paper Fabrics can touch Rs 320-330.
Tulsian told CNBC-TV18, "Voith Paper Fabrics is a very smallcap company. They are country's largest makers of entire range of paper machine clothing used in paper, paper board makers, fibres and cement plant. The financial performance of this company has been consistent. They end their financial year in September, 2011."
He further added, "They had a topline of close to Rs 56 crore but PAT margin has been close to 20-21% which has resulted into very good performance. The best part is that it is 74 subsidiary of Germany company. The company is sitting on a cash balance of Rs 150 per share in the books. They have been consistently improving their performance and profit margins."
"Talking the year ended September 2012, they should be able to post an EPS of about Rs 30 for the current year. So, that would make the share rule at a PE multiple of about 7-8. If one knocks off the cash balance lying in their books, one can say that the core business is available at a PE multiple of less than 3-4."
"Whenever one sees stock hitting a life time high that stock comes into a new orbit and same thing has happened here. It is not widely discussed stock and it made a 52 week high at about Rs 272 when results were announced. This is gradually coming into the shopping list of the value investor. If one can keep a view of about six to eight months, he/she can expect a price of about Rs 320-330."
