Kalyani Forge can move to Rs 230-250: SP Tulsian

Kalyani Forge can move to Rs 230-250 in next one year, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, "Kalyani Forge is a Kalyani group company. They are into the close dye forging, making the real excel tube assemblies and the finished machine component.”
He further added, “If you see the performance of the company for first quarter, in fact what I liked about the company is that their PAT margin has improved to sub 6% which was at sub 5% for the previous quarter of the corresponding previous financial year.”
“If I extrapolate the present trend because the company has been since giving the consistent performance because of the established and reputed automobile client base with them. The company should be able to post an EPS of close to about Rs 50 and if I go by their present book value as on 30th June which stands at about Rs 270 and the share is likely to post an EPS of close to about Rs 50 for FY13, the share is ruling at a PE multiple of 3.5 on the current years earning and the price to book of 0.5 if I take as on 31st March or may be 0.6 as of today.”
“So going by the financial performance and the standing of the company, I think the stock has good potential to move to about Rs 230-250 in next one year and even in the shorter run, in the next 6 months, one can expect a price of about Rs 200."