Expect 15-20% return in Siyaram Silk: Tulsian

If somebody can keep a view of about three-four months on Siyaram Silk Mills, one can expect 15-20% return, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, "I like Siyaram Silk Mills because if you go by the textile industry, presently they have been going through the best patch in the last 25 or 30 years. When you talk to the industry people, they are so jubilant and especially, the companies which have integrated operations. Siyaram Silk is a vertically integrated company. It is the largest blended fabric maker in the country with a very strong brand and very strong retail outlet." He further added, "If you see their financial performance posted for Q3, it has been quite good with an EPS of close to about Rs 18. If you go by their nine months performance, they have already posted an EPS of Rs 42. The numbers which they posted in Q3 are likely to get repeated in Q4 and it is likely to be much better. They should be able to post an EPS of close to about Rs 60 on topline of Rs 900 crore." "The share is virtually ruling at a PE multiple of less than 5, could be about 4.5 to 5 times. The scenario or the situation is going to remain quite profitable for the textile company, especially, for companies, which have integrated operations from start to end that is from yarn making to garment making. My view is quite positive on the stock. If somebody can keep a view of about three-four months on this stock, one can expect a return of 15-20% in this period."