OCL India can move to Rs 150: SP Tulsian

OCL India can move to Rs 150, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, "OCL India has two cement plants with capacity of 5.35 million tonne and they are one of the largest composite refractory maker with capacity of 1.10 lakh tonne per annum. If you see their EBIT margin is close to about 30% on the cement business for Q1."
He further added, "The numbers which they have posted now and if I just go by the whole performance for FY12 they had an EPS of close to about Rs 5.60 for the whole year on a PAT of close to about Rs 32 crore, on a top-line of Rs 1,500 crore. But if I take a turnover of the Q1 alone they had a turnover of Rs 480 crore with PAT of close to 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."
"Going forward I am expecting that the company should be able to do quite well in their refractory operations as well as the cement business both, because the Odisha region has very low presence of the cement mills and all that and this company always have the advantage of their strong Konark Brand, cement sales marketing in the brand Konark."
"I am expecting that maybe FY13 should be able to see an EPS of close to Rs 35-36 and if I go by the kind of rerating happening of the midsized cement companies whether you take the call on the Prism Cement, Heidelberg or maybe so many other midcap cement stocks, this stock looks to be quite cheap and one can expect a price of about Rs 150 in next six months or so and even if it is kept for a longer horizon maybe of 12-18 months can expect a price of Rs 200." Disclosure: I have no holding in the above stock.