SP Tulsian's multi-bagger that may fetch you 25% returns

In an interview to CNBC-TV18, SP Tulsian of sptulsian.com picks Radico Khaitan as his multi-bagger for the day. Tulsian pegs its target price at Rs 160 in the next six months.

Check out: Top stock ideas by 3 market experts Below is a verbatim transcript. On Radico Khaitan
This company is the oldest brewery in the country and they have started marketing in their own brand from 1999. On the financial performance side, for the first nine months they had a topline of Rs 950 crore with profit after tax (PAT) of Rs 62 crore. On an annualized basis with extrapolating the similar trend, you are going to have an earnings per share (EPS) of close to more than Rs 6 maybe Rs 6.30. For nine months, the EPS was at Rs 4.85. The price to earnings ratio (P/E) multiple now is ruling at close to about Rs 21-22 or maybe Rs 20 for the forward earning for FY14 which is likely to be at least about Rs 8 or so. The book value, at about Rs 52-53, and the shareholding pattern both are quite respectable. Promoters are holding about 42-43 percent stake. As usual we all see that foreign institutional investors (FIIs) are holding good amount of investments in all the breweries stocks. Here, also 51 percent stake is held by FIIs. This stock gives a very good trading pattern on a very longer horizon. Probably in one year we may see the stock move to about Rs 150-160 again, corrects in line with the market and falls back to Rs 125-130 or so again. In my view, it is now ruling at its lower level at Rs 126-127 and one can expect a price of Rs 160. However, one should be very disciplined to sell the stock maybe at Rs 150 or so, though the target is given at Rs 160, which can also be met in six months and again should look to re-enter into the stock. In this carnage or in this uncertain volatile market, this stock in my view is quite safe with a very limited downside. That is the reason I am recommending this stock.