Multibaggers ideas: SP Tulsian's 2 picks for good returns

SP Tulsian, sptulsian.com has picked up Dalmia Bharat Sugar and OCL India as his multibaggers for the day.

Dalmia Bharat Sugar, he says, looks good. "One can expect a price of Rs 24-25 for this stock in next six months."
According to Tulsian, OCL India is a good bet in midsized cement companies and the stock can touch Rs 150 in six months and Rs 200 in next 12-18 months. Dalmia Bharat Sugar
Dalmia Bharat Sugar has three mills with a per day crushing capacity of 22,500 tonne with matching co-gen facility and & distillery of 80 KLPD. Unrealised gains and the book inventory are two triggers for stocks like Dalmia Bharat Sugar and Balrampur Sugar.
These factors have still not been reflected in their Q1 results. Till June 30, after declaration of their results the company had a closing inventory of unrealized gain value of Rs 45 crore. In the June quarter the company had a good PAT of Rs 10 crore.
With good monsoon in Eastern UP and drought situation prevailing in the Maharashtra and Karnataka, it is estimated that UP-based sugar mills will show a better performance.
Monsoon has been slightly inferior in Western and Central UP. In view of firm sugar prices of Rs 34-35 per kg, the companies overall are likely to perform better.
For this stock, one can expect an EPS of Rs 6 for the whole year. On book value basis fundamentally, the share looks cheap with a book value of Rs 54-55. One can expect a price of Rs 24-25 in next six months. OCL India
OCL India is one of the largest composite refractory manufacturers with capacity of 1.10 lakh tonne per annum. They have two cement plants with capacity of 5.35 million tonne. In the Q1 their EBIT margin is close to 30%. For the whole of FY12, they had an EPS of Rs 5.60 on a PAT of Rs 32, on a top-line of Rs 1,500 crore.
In the Q1, the company had a turnover of Rs 480 crore with PAT of Rs 64-65 crore which translated into an EPS of Rs 11.60 for the quarter alone as against Rs 5.60 for whole of FY12. I expect the company to perform better in both refractory operations as well as the cement business. For FY13, I expect an EPS of Rs 35-36. This stock is cheap compared to Prism Cement and Heidelberg after rerating of midsized cement companies. One can expect a price of Rs 150 in next six months and the stock can touch Rs 200 in next 12-18 months. Disclosure: I have no holding in any of the stocks discussed.