Multibaggers: SP Tulsian's 3 picks that can make you money

SP Tulsian, sptulsian.com is bullish on Asian Oilfield Services, Dunlop India and Balaji Amines.

Below is a verbatim transcript of his exclusive interview with CNBC-TV18's Udayan Mukherjee and Mitali Mukherjee. Also watch the accompanying videos. Q: What is the story that you like in Asian Oilfields Services? A: This company is basically into providing seismic services to oilfields and oil exploration activity. Recently, they have moved into to the core mining activities also where the services are provided to the coal and iron ore mining sector and both the sectors have now started doing quite well. If I focus only on FY11 because FY10 was a flat performance, in FY11, they had good Q1 results, but Q2 was very bad because of lack of orders. In spite of having the total infrastructure in place in respect to equipments and all the man power, they have been involved in three projects in the North-East Region and there they have not been doing so well. But now they have recently got orders of about Rs 80 crore. Of those three assignments, two are in North East region and those they will be completing very soon and will be moving on to this Rs 80 crore orders. I am expecting that from FY12 onwards the company should be able to post the reasonable performance, which they have been posting a couple of years back, with top-line of close to Rs 75-80 crore and bottom-line of maybe close to Rs 8-9 crore which can translate into an earnings per share (EPS) of Rs 5 per share. Going by the financials of the company, the promoters of the company last year have subscribed the equity at about 40 lakh shares at Rs 61 per share. So, the present networth of the company is close to about Rs 100 crore on an equity of Rs 15 crore, so that translates into a book value of Rs 61-62, while the share price is quite low. The entire amount has been used for purchase of the fixed assets for creating the infrastructure of the company. So, once you have this place and the potential of both the sectors going ahead, I think the company is likely to perform quite well. Maybe because of this non performance in the last 6-12 months, the share price has been languishing at such low levels. I am quite positive on the stock with a view of about six-eight months time. If somebody can have that kind of time horizon, he can look for a 50% return from these levels. Q: The other pick you have is Dunlop. What is the story there? A: There is an interesting story in Dunlop. The Ruias, who are already running the Falcon Tyres, have acquired this company a year back. We all know that the company has been lying closed for quite some time, maybe for the last eight-ten years. So, it was a Herculean task. But the company is bagged by rich assets, manufacturing plant good land value, good brand recall etc. So, recently, maybe in the last one year, the promoters have infused about Rs 250 crore into the company as an inter-corporate loan which can be termed as quasi equity and the company can be called debt free. Even if I take this as a debt, the networth of the company presently is Rs 125 crore. They have two plants one at Sahaganj in West Bengal and Ambattur in Tamil Nadu. In Ambattur, it