Buy WABCO-TVS, says Tulsian

Buy WABCO-TVS, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, "WABCO-TVS is making conventional and advanced breaking system as well as air compression products. TVS does not hold any stake in the company. The entire 75% promoter equity is held by WABCO of Belgium and they are catering mainly to the CV segment with two plants in Chennai and one plant in Jamshedpur and 85% of market share in the CV segment is held by them in the OEM space and 75% in the replacement market. So going by their market share and going by the critical product, they have a very good pricing power and that has resulted in them maintaining an EBITDA margin of about 23% year-on-year." He further added, "If you look at it quarter-on-quarter (QoQ) also, every quarter sequentially they have been able to ramp-up their EBITDA margin by about 10-20 bps. So they are very conscious of maintaining the topline. They reported a topline of about Rs 650 crore for the nine months ended December with an EPS of about Rs 50." "It is a debt-free company and probably in FY12, I won