SP Tulsian's top picks: Hanung Toys, Advanta India

SP Tulsian of sptulsian.com sees Hanung Toys and Advanta India fetching good returns ahead.

"Hanung Toys was recently in news because of their GDR issue. Though the company has been facing some issues, their fundamental and financial performance has been quiet reasonable." According to Tulsian, the sentiments may not turn negative from hereon. The stock doesn't seem to have much downside risk and is likely to see 20-22% growth ahead. "Advanta India is the largest seed company in the world. They have increased their presence in Latin America and have made huge investments for the same. I see a lot of potential in the stock because the demand for the hybrid seeds is picking up world over. The share doesn't seem to have much downside risk and from a 12-18 months time horizon the stock can give 100% returns," he added. Check out: 7 stocks that tend to do well in July Below is the verbatim transcript of his interview with Udayan Mukherjee of CNBC-TV18. Also watch the accompanying videos. On Hanung Toys: This stock has taken a lot of beating mainly because of so many reasons.
About 3-4 months back it was expected that the company will be issuing bonus 1:1 that did not come. Then there was a news that company will be coming out with the GDR issue even that has been postponed. There have been all kinds of problems which has not been able to satisfy the investors. Since then the stock has been correcting. It touched a high of Rs 400 plus and now corrected to about Rs 125 just maybe a couple of days back. Going by fundamentals, they are into the toys, home furnishing and textile making and the financial performance of the company has been quite reasonable. The company has been able to post an EPS of Rs 48 so that results into a price to earning multiple of close to about Rs 3 on the historic earnings. Its price to book multiple is ruling at 0.7. I do not think that this sentiment can really go negative from hereon and yesterday we have been buying into the stock with huge volume. Majority of that volume has translated into the delivery also though we see good quantity getting as trading volume. At a lower level of about Rs 130 now the share is ruling at Rs 142-143. The valuation seems to be hitting the bottom of the valuation level and now the renewed buying interest is coming back. I am quite optimistic on the stock that going forward they are going to experience a growth of about 20-22% for FY12 and that should translate in to an EPS of close to about 60. Even if you keep your PE multiples stagnant at about 3-3.5 share has the potential to move to about Rs 200 in the next 6 to 8 months time. While I do not see much downside risk from hereon because looking into the company