Jindal Drilling has target of Rs 550: Tulsian

Jindal Drilling Industries has target of Rs 550 from the current level, says SP Tulsian of sptulsian.com.

Tulsian told CNBC-TV18, "Jindal Drilling Industries is a drilling contractor having five jack-up rigs. If you see the performance, yesterday they have announced their Q3 results, that translates into an earning per share (EPS) of about Rs 10 plus. If I go by the full year performance, since we have the nine months performance in front of us, with bottom-line of about Rs 75 crore and top-line of about Rs 750 crore, FY11 should result in a top-line of about Rs 1,100 crore and bottom-line of about Rs 100 crore. And that makes the share ruling at a PE multiple of about ten times because EPS should be close to about Rs 42-43." He further added, "Traditionally, this stock has been ruling at a PE multiple of 16-18 times. But because of the carnage we have been seeing in the market and especially in this midcap or smallcap stocks, they have all taken beating beyond proportion." "If you go by the financials performance, the five jack-up rigs have long tenure also. They have been deployed and the term of the contracts will be expiring from October