Tulsian's multibagger picks: IL&FS Eng, Hind Dorr Oliver

In an interview with CNBC-TV18, SP Tulsian of sptulsian.com talks to investors about two of his multibagger picks - IL&FS Engineering and Hindustan Dorr Oliver.

On IL&FS Engineering
For the last six months, this company has been struggling, more on account of the debt restructuring, logging their claim with Satyam Computers in which they have logged at about Rs 350 crore and they are confident of receiving it as well, they have also received a one-time settlement with the debtors and they have inducted an investor from Middle East who is holding 32% stake which was acquired at Rs 185. Subsequent to that acquisition, the open offer came in at Rs 195. Everything is now in place. You have the investors with IL&FS holding 32% stake by that overseas investors from the Middle East.
The institutional holding is quite high leaving the public float at just 10%. As the one-time settlement happened, re-schedule of loans happened and the net debt in the books of the company on a consolidated basis is left at about Rs 850 crore. Their core business has been doing quite well with a topline of Rs 1,000 crore and the profitability has to improve.
If you see their business portfolio, they are holding stake in various infrastructure projects like rail, power projects, bridges, infrastructure, roads etc. With IL&FS as the promoter and though the overseas investors has not been named as a promoter pursuant to the order of the company law board but collectively it should be taken that 70% stake is held by both the promoters.
The marketcap of the company is quite low. This can prove to be a really good stock provided one can keep a view of about 12 months. I won