FDC can move to Rs 100, says SP Tulsian

FDC can move to Rs 100 in next six months, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, "FDC's June quarter results have been very good. First, if I go by the business model and the infrastructure of the company, it has six manufacturing plants. It has a wide range of pharmaceuticals. It is also making active pharmaceutical ingredients (APIs), which we call bulk drugs. Also, it is into the neutraceuticals and some food based pharmaceutical products. All the products are enjoying very good margins and very good growth potential."
He further added, "If you go by the financial performance for Q1, I think the whole of FY13 is likely to see a top-line growth of close to about 15% and bottom-line growth of about 20%. The general depreciation on a quarterly basis has been to the tune of about Rs 5 crore, but for this June quarter, it had an extra depreciation of Rs 4.5 crore, which has taken the depreciation burden to about Rs 9.5 crore for the quarter. Inspite of that, the financial performance has been quite good."
"EPS of the company for the quarter has been at Rs 2.2, while because of this higher depreciation, the cash EPS has been at Rs 2.75. The EPS for the whole of FY12 was at about Rs 7.25. The company is likely to post the growth of about 15% on topline and 20% on bottomline. I am expecting FY13 EPS to close to be at about Rs 9."
"It is a debt-free company. If you see the business model, if you see the present valuations, I think the stock looks quite undervalued, considering the promoter holding of close to 70%, the institutional holdings of about maybe 22-23%. So, taking all this into account, I think the stock can move to about Rs 100 in next six months and looks very good at the current price."